Download eBook - Stocks - Secrets for Profiting in Bull and Bear Markets - Sam Weinstein PDF

TitleeBook - Stocks - Secrets for Profiting in Bull and Bear Markets - Sam Weinstein
File Size111.5 KB
Total Pages5
Table of Contents
                            READING CHARTS
Further tips on buying
Swing rule
		Stage analysis
		Advance-Decline line
Document Text Contents
Page 1

Secrets for profiting in bull and bear markets
Sam Weinstein

1. Check market indicators for overall direction
2. Scan the industry groups to know which one to zero in
3. Cull out the stocks with the most potentially profitable formation within the favourable

4. Concentrate majority of buying in continuation-type buy patterns that are already in Srage 2,

and reverse for bear markets

• Know where protective stop will be (ALWAYS use it) set before entering the order – if it’s
too far away, look for other stock or wait to purchase when safer level forms

• Never sell a stock in Stages 1 or (especially) 2, AND never buy a stock in Stages 3 or
(especially) 4 – stage analysis can be applied to any investments that are governed by supply
and demand

• Never guess a bottom (and go long)
• Don’t feel that one has to be 100% invested all the times. Differentiate when charts and

indicators point to fully invested and when to extreme caution
• Always be in harmony with the market – buy Stage 2 strength; sell Stage 4 weakness
• In case of conflict between price volume action and the earnings, always go with objective

message being supplied by technical approach
• Always be consistent. Keep a diary and analyze actions

Daily for very short traders, weekly for intermediate (several months) traders. Below
specifically on weekly charts:

1. Look at each high-low-close spike – forming pattern with insight into next major move
2. Look at volume plot – very important that volume is large and expanding on breakout
3. Look at 30 week MA – never long if P below declining 30-week MA; never short if P

above rising 30 week MA
4. Be aware of its long-range background (yearly high-low, long-term support/resistance)
5. Look at its relative-strength line – long on uptrend, short on downtrend; watch those

situations where it shifts direction

4 stage cycle

Stage 1

Stage 2

Stage 3

Stage 4

30 wk MA

Similer Documents