Stage Analysis Beginners Questions

RE: Stage Analysis Beginners Questions

(10-02-2019, 08:12 AM)isatrader Wrote:
(10-02-2019, 06:28 AM)yuriythebest Wrote: Hi! I'm currently going through the stage analysis study guide - questions and answers  and for the very first example, can you explain the placement of the resistance line? thanks in advance!

Hi yuriythebest, don't get too bogged down in the placement of the lines. They are just highlights of the near term resistance on the chart. As you are correct that it would still be a level of resistance. However, the purpose of the lines was just to show the Stage 2A breakout level - which can occur below older resistance. As when determining the Stage 2A breakout level, we look for the nearest significant high, which can sometimes occur below an older high like what you've highlighted.

Thank you so much!
Any chance of more examples in Stage Analysis Study Guide - Questions and Answers?

Reply

RE: Stage Analysis Beginners Questions

(10-03-2019, 02:31 PM)yuriythebest Wrote: Thank you so much!
Any chance of more examples in Stage Analysis Study Guide - Questions and Answers?

I will be adding some more over time, and I'm also planning on doing a video course to help people new to the method to get up to speed much quicker.

isatrader

Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
Reply

RE: Stage Analysis Beginners Questions

Hi, I apologise if this has been asked before (though I can't seem to find any previous posts on this). I'd like to ask about the "forest for the trees" method which Stan Weinstein advocates.

He says, first, go through the charts for each sector and pick the one/s which are favourable (eg, the sector whose chart is breaking out of Stage 1 into Stage 2).

Next, and this is the part which I am unsure of, we should go through the charts for each industry in this sector? For example, if the sector is Healthcare, we have to go through the charts for the sub-industries in Healthcare such as Biotechnology, Pharmaceuticals, Medical Equipments, etc etc and then pick the sub-industry or industries with the best chart action?

And from here, we then go through each stock within the selected sub-industry, right, and pick the best stock with the best chart action?

My question is: where can we find all these charts for the sub-industries? Is there a resource which we can go to?

Thank you in advance for your advice. It's much appreciated.

**Keep up the great work, by the way!

Reply

RE: Stage Analysis Beginners Questions

(11-22-2019, 02:45 PM)Nerraw Wrote: Next, and this is the part which I am unsure of, we should go through the charts for each industry in this sector? For example, if the sector is Healthcare, we have to go through the charts for the sub-industries in Healthcare such as Biotechnology, Pharmaceuticals, Medical Equipments, etc etc and then pick the sub-industry or industries with the best chart action?

And from here, we then go through each stock within the selected sub-industry, right, and pick the best stock with the best chart action?

My question is: where can we find all these charts for the sub-industries? Is there a resource which we can go to?

Hi Nerraw, good question and welcome to the site.

Drilling down into the sub-sectors can be tricky, but there are a few resources out there that can help. The one I've always found most useful is on stockcharts and can be found at US Industry Summary

This has drop down options to change between the day, week, month, three month etc. So that you can see which sectors are performing the best over different time periods. Then if you click on the name of the sector it will take you to another page that has all of the stocks listed in that sector, and you can change the time period again and see which of those are performing the best over different time periods. For example attached is the Travel and Tourism Sub Sectors stocks performance over the last month.

   

I hope that helps.

isatrader

Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
Reply

RE: Stage Analysis Beginners Questions

Thank you so much for this, isatrader. This is a big help indeed. Again, thank you.

Reply

RE: Stage Analysis Beginners Questions

Hello, stan weinstein only has Stage 1, Stage 2, Stage 3, Stage 4; why are you divided into Stage 1A, Stage 1, Stage 1B, Stage 2A, Stage 2, Stage 2B, Stage 3A, Stage 3, Stage 3B, Stage 4A, Stage 4, Stage 4B? I have never understood such a complicated price segment zoning. Can I have a more detailed chart?

Reply

RE: Stage Analysis Beginners Questions

Hello,isatrader! how do you select Stan Weinstein's stock with software code? Is there this code and method?

Reply

RE: Stage Analysis Beginners Questions

(12-02-2019, 07:55 AM)stanhao Wrote: Hello, stan weinstein only has Stage 1, Stage 2, Stage 3, Stage 4; why are you divided into Stage 1A, Stage 1, Stage 1B, Stage 2A, Stage 2, Stage 2B, Stage 3A, Stage 3, Stage 3B, Stage 4A, Stage 4, Stage 4B? I have never understood such a complicated price segment zoning. Can I have a more detailed chart?

Hi stanhao, the sub stages were added to the method by Stan Weinstein in his Global Trend Alert service after the book was written.

It's not complicated, and Stan said in an interview that there are no hard and fast rules with the A an B stages. They simply just give a way to show when a stock is Early in that Stage or Late in that Stage. So I find that they give additional context to where a stock is in its cycle, as for example a stock in Stage 2A will have only just recently broken out into Stage 2. So you would say that it is early in Stage 2, and hence would get a Stage 2A rating. Whereas a stock that has been in a Stage 2 advance for nearly a year, with multiple significant pullbacks towards the 30 week moving average would be labelled as Stage 2B, as remember from the book, Stan considers long term as 12 months, as so if a stock has been in Stage 2 for most of year, then the probabilities are, that it's getting late in that Stage.

I hope that helps, and below is the full definitions from his Global Trend Alert service.

Definitions of the Stages and Sub-stages

Stage 1A Start of a base. Needs much more time.
Stage 1 Basing Phase. May begin accumulation.
Stage 1B Late in base-building phase. Watch for breakout.

Stage 2A Early in uptrend stage. Ideal time to buy aggressively.
Stage 2 Advancing Stage.
Stage 2B Getting late in uptrend.

Stage 3A Looks as if a top is starting to form. Be sure to protect holdings with a close stop.
Stage 3 The Top Area. Start to reduce positions.
Stage 3B Has become increasingly toppy. Use rallies for at least partial selling.

Stage 4A Stock has entered Downtrend Stage. Close out remaining positions.
Stage 4 The Declining Stage. Avoid on the long side.
Stage 4B Late in downtrend. Much too soon to consider buying.
Stage 4B- Although not yet 'officially' in Stage 1A, stock has now seen its low for the cycle.

Additional ratings
(A) Early in that Stage.
(B) Late in that Stage.
(+) Outstanding pattern in that Stage.
(–) Unexciting pattern in that Stage.

isatrader

Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
Reply


Forum Jump:


Users browsing this thread: 1 Guest(s)