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  1. Default Weinstein Method - Stage 2? Head & Shoulders pattern?

    Greetings fellow subscribers of the Weinstein method.

    I just picked up some shares of SUAI (my first trade using the Weinstein method) and I wanted to get some opinions on my reading of the chart. I see it crossing the 30wk MA along with resistance at $5, thus crossing the neckline and entering S2.

    I wanted to get some input from more astute members who use the Weinstein method to see if my reading is accurate or way out in left field. I have money invested in this so any feedback would be DEEPLY appreciated! :-)

    Thanks in advance!

  2. Default

    I know nothing about the stock except what the chart tells me. I'm a bit confused by the title of your post? Head and shoulders is a different pattern. You can read about it on the IC trading guides. To me, SUAI looks OK from a WS view. A couple of things I would mention:

    - I like the volume increase and change in RS from negative slope to positive. The pullback to near the 30w MA after the initial breakout is pretty much textbook WS.
    - a longer period on stage 1 basing would have been nice.
    - the minor resistance at $6.20 is a bit close for comfort. Then you have the major resistance at $7

    Overall, with attention to your stops, you should be on a good thing. Best of luck.

  3. Default

    Thanks a bunch for your comment, I truly appreciate it and you as well for taking time to review the chart and respond.

    I must also mention that I noticed the nearby resistance as well. SW doesn't like nearby resistance but I'm okay with that for now because I set a goal to read the book and make a trade in June. The chart looked okay as you mentioned and June is almost over so I had to commit to and complete my goal in order to stay in-line with this specific milestone. I only invested a small amount of money but I had to "take action".

    I'm hopeful to make better WS trades moving forward though. Again, thanks for your help. :-)

  4. Default

    No problem traderron. I would be interested to hear how you get on. Maybe post an update in a week or two?

  5. Default

    Good points sway. One thing I would mention if you are following the Weinstein method Traderon, he says in his book that when the market generally is heading lower you should only be looking to short. Or taking very few long positions. That is the situation we are in at the moment.

    Its something to keep in mind keep the percentages on your side i.e more stocks heading south than up.

 

 

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