[isatrader]

Hi Isatrader

I am looking to take my first SW trade.
At what part of a stage is it "too late" to take an entry position?
For example in the case of Sports Direct:
I believe the shares would be classed as Stage 4a ?
The Relative Strength is decreasing and below the 52 week average
It is from a sector which appears to be in Stage 4a

So all appears good for a short

I don't think there is any close resistance

BUT have I missed the ideal entry?

Hi nitrader, I've marked up the sports direct chart for you and included the weekly ichimoku cloud to give you visual assistance of where the resistance is on chart.

You have missed the ideal entry, as it would have been on the 26th Sept 14 imo, at the close of 620.5, as that's when it made a strong weekly breakdown that also cleared the late 2013 range resistance, and also completed a one year head and shoulders pattern. There was an earlier breakdown attempt back in late July, however it didn't clear resistance and immediately reversed and so would be discounted. Note how the volume contracted significantly on the right shoulder as it moved back higher towards the 200 day MA and then stalled without being able to recover the 200 day MA, and then as it rolled over the volume began to build again on the down weeks.

The secondary ideal entry point would be on a pullback to test the breakdown zone. However, you don't always get the pullback entry option, and so the other next entry point would then be when it consolidates for a while and then makes the further continuation to new lows.

I hope that helps.