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 Gold Customer
Joined: 10/14/2004
Posts: 202
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So much is written about exit strategies based upon trends, resistance, retracements and support levels, etc., but I have seen
very little information giving guidance as to when multi-level entries should take place. It seems to be a wise
decision to use a smaller percentage of the overall trade as a probe in order to determine if one's initial decision to enter the trade was correct, but at what point should the remainder of the trade take place and, assuming the probe trade was correct, at what levels.
Thank You.
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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This question is beyond the scope of what we trainers can answer. I will move this to the Stock Talk forum so other board members can share their thoughts.
- Craig
Here to Help!
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Registered User
Joined: 1/1/2005
Posts: 35
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I trade in longer time frames than alot of traders here. I analyze weekly charts and use 4 stage price analysis as taught by Weinstein in his book.
I like to take most or all of my position as price is moving out of a stage 1 base and into stage 2(advancing stage).....as long as I have volume and relative strength confirmation. after the breakout..I will play movie critic and decide if I really liked what I saw. If the volume, price action, and relative strength are not up to standards I will sell out of the position even if I am up and my stop loss is not in danger. If the action, in hindsight, was up to my standards then I'll sit tight. I also require that price be above the 30 week MA, and that the 30 week MA is sloping up...but I generally see this before the breakout. I'm an end of day trader too...so I do not always see my volume on breakouts in real time. I'll analyze everything after the market closes and make my decisions at night....preparing for the next day of market action.
Usually, after the breakout of the stage 1 base...there will be at least one pullback to the resistance area(now support). Most often(especially when I am right) the pullback will not come all the way back to the breakout point. Anyway...this would be my chance to add shares to the position. Some Weinstein practitioners will take 1/2 position on the breakout, and 1/2 position on that pullback. However, the strongest breakouts will not pull back until later...correcting to the rising 30 week MA. My psoture is that if I wait for the pullback I will miss some of the strongest moves that don't pull back.
That's my technique as it applies to my system. I'm sure others have their own ideas and styles.
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Registered User
Joined: 12/8/2004
Posts: 1,301
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Sounds like Stan Weinstein's method. I have used it for years with great success.
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