[isatrader]

Hello All, I just had a few questions regarding the method and thought I'd post them here since I'm sure they will come off as newbie questions, andwyas these questions are being framed using the Trader method

1. How is it that you can use the P&F breakouts charts when the price has already broken out, unless am I correct in assuming you are getting in on the more conservative pullbacks? And where can I find the traders method premium thread?

P&F charts are very useful for additional confirmation of the Stages, as using the traditional P&F scaling settings, they tend to be quite long term in what they show, as they filter out a lot of the noise. And hence are similar to looking at the monthly charts. They are also are excellent for identifying key support and resistance levels, and can be used as another relative performance tool to compare stocks to each other or to an index like the S&P 500. So I show them when they offer useful additional information to what the weekly and daily charts are showing.

In regards to using them when the price has already broken into Stage 2. You'd wait for the column of Xs to reverse to Os, and then either pullback to a previous support level for a pullback entry, or buy on the continuation breakout when the column reverses back to Xs again after a minor pullback and make a new double top buy signal. (i.e. the current column of Xs, moves above the previous column of Xs). So when this occurs within a strong Stage 2 advance, it is a trader method entry point.

You can find the premium thread for US stocks - which is for both the investor and trader methods, in the Stage Analysis (Premium) section of the Elite Board, and it's called US Stocks - Watchlist and Discussion (Premium)

2. In regards to breadth indicators I understand that the give a general idea of the strength or in the market, but how do you deal with conflicting breadth indicators, breadth on different time frames such as the daily and weekly, or are there breadth indicators you focus on more than others based on the trader or investor method?

Weinstein's method focuses on what he calls the "Weight of Evidence" approach, that looks at 50+ different market breadth measures. The idea is that it's like an index of breadth measures where you are looking for the average of what they are all telling you collectively, as not all will be positive or negative at the same time, and hence some may give you conflicting signals. As the idea is not to focus on one breadth indicator alone, and to workout what the Weight of Evidence is telling you.

So for example the breadth started off the year in a very neutral position after recovering from a flush out in October, where some hit their lower ranges, and had recovered back neutral areas. But the last few weeks the breadth improved significantly with breakouts in multiple breadth measures, and so the weight of evidence is currently on the more bullish side of the spectrum. And so as the market is in gear, using the trader method, you'd be looking for Stage 2 continuation breakouts, or stocks consolidating near to their highs that are making volatility contraction patterns (i.e. cup and handle type patterns), that are on verge of a potential continuation breakout.

3. I noticed that for the trader method (well and the investor method)that you have included more checklist items for the daily and monthly timeframes, would you recommend taking trades using the daily chart or the weekly, because in the book there where examples using both time frames?

The Stages are worked out using the weekly charts, which is why they were used in the book examples I believe. But if you are using the trader method you'll need to focus on the daily chart more.

4. I think my biggest weakness is identifying potential areas of S/R that could hinder the progress of the trade; are there any resources you would recommend on using the the weekly Ichimoku cloud ?

Stockcharts has a quick guide http://stockcharts.com/school/doku.php?i...moku_cloud and some references to books. But if you are using the trader method, then it's quite simple in regards the weekly cloud. Don't trade anything below it. As trader method stocks should generally always be in a strong Stage 2 advance already in normal market conditions, and so would be above the weekly cloud resistance.