Articles

Home  >  Articles  >  General Articles  >  Stage Analysis - finding the 'breakout' shares
Printer Friendly Version

Stage Analysis - finding the 'breakout' shares

Page: 1 2 3 4 5 6 7
by Alan Saunders -  Nov 16, 2006
8.2 (from 24 ratings)

One last ‘rule’: Weinstein advises that you be aware of the main trend of the market in which you intend to invest. There is a far greater risk involved in buying a share when the market index for that share is in a Stage 3 or Stage 4 formation.

For ‘bear’ markets (Stage 4’s) it is simply a case of reversing the indicators and shorting the shares rather than buying them; and that can be even more profitable as shares will go down faster than they go up.

Enjoy your share selections. Remember, the trend really is your friend; but you need to know whether it is a Stage 1,2,3 or 4 trend before you open a trade and Weinstein’s stage identification techniques really do make trading simpler and profitable.

Page: 1 2 3 4 5 6 7



Comment on this Article

Recent Comments:
Read this article: http://www.accuinvestor.com/bollingersqueeze.html Basically the whole point of the Bollinger squeeze is to identify breakout points.
maolivie   07-03-2007 12:44:34
Quote: Originally Posted by dbphoenix Keep in mind, though, that the lives of people who trade off weekly charts do not revolve around trading; they aren't sitting in front of their screens all day long obsessing over every tick. Directly translating EOD and EOW strategies such as Weinstein's and Darvas's to intraday trading is its own challenge. Db Yes, that was the first important point to strike me....
Splitlink   26-12-2006 04:28:30
Have a look at www.chart-breakouts.co.uk any english traders out there,pretty fine record to date,not sure what software they're using but pulled some right good trades out this last month although it has been a strong market.
kitster   25-12-2006 17:12:18
Breakouts - I would say that they are still a firm tried-and-tested way of trading the markets. Thanks Damian
damianoakley   20-11-2006 13:55:05
I liked this article. Of course in real world not everything is easy and it's often difficult to find clear stages. But the idea is good to shape the long term scenario. Could be good also to decide when hedge or not a long only portfolio
Mirkopor   20-11-2006 07:27:13

View the comment thread

Sorry, you are not allowed to add comments. Please login or register first.




Copyright © 2001-2008 Trade2Win Ltd.