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I've posted my initial thoughts about expanding our BO opportunities and mentioned that we're going to look at pullbacks and some index trading. Over the last few days I've been thinking that I should slow down. There's no benefit in having too many opportunities and it could be a disadvantage. I don't want to confuse new traders and I've always suggested that they master one type of setup before adding others. For July I'm going to stick with BOs and let the other strategies appear when the time is right. It's quite possible that a BO setup occurs at the end of a corrective pullback. When I see one like that I'll point it out and we'll introduce other aspects of these pullbacks at that time.

There are lots of charts showing corrective pullbacks right now as the market has dropped. If the market rallies then most stocks will rally. All setups will look promising. If the market falls further then these setups will fail. Stocks showing the greatest relative strength will be those stocks making new highs. I prefer to be buying new highs in all market conditions as these are the strongest charts. Of course they don't all work out. That's why we manage our exposure (heat).

(1) I'm looking for charts with clearly market horizontal resistance in a weekly or monthly up trend. They're for my SMSF. (Weekly Darvas scans)
(2) Next I'm looking for charts near their yearly highs with shallow consolidations (in weekly charts). (Daily Darvas scans)
(3) Then I'm looking for 10d BO with volume (thrust bars) You can see these in all three of tech/a charts HSN, SIQ, YOW. (Daily pm scans)
(4) Then I'm looking for small consolidations in strong trends (hope this rings a bell, Pav response)

Every weekend I find all the stocks that are stronger than the index (XAO) over the past 13 weeks (RSC(XAO,13) > 0). I throw them all in a watch list and sort through them. Charts with clear resistance levels go into a pending BO list. Charts showing corrective pullbacks go into a pullback list. Charts that are going sideways after a down trend go into a reversal list. Every PM I review those watch lists and wait for perfect low sized risk setups to buy them. There are approx 20 charts in each list. I don't let them get too big. When the chart looks poor and the anticipated opportunity isn't progressing as I'd like I ditch it.

I only mention this as it might help some of you organise your thoughts and procedures.

For July, focus on finding those perfect BO setups. They're out there.
ALU > 4.80, APE, BAL, CDA, DNA >0.80, FLN >1.40, NUF>8.00

<blockquote data-quote="peter2" data-source="post: 873428" data-attributes="member: 13908">I&#039;ve posted my initial thoughts about expanding our BO opportunities and mentioned that we&#039;re going to look at pullbacks and some index trading. Over the last few days I&#039;ve been thinking that I should slow down. There&#039;s no benefit in having too many opportunities and it could be a disadvantage. I don&#039;t want to confuse new traders and I&#039;ve always suggested that they master one type of setup before adding others. For July I&#039;m going to stick with BOs and let the other strategies appear when the time is right. It&#039;s quite possible that a BO setup occurs at the end of a corrective pullback. When I see one like that I&#039;ll point it out and we&#039;ll introduce other aspects of these pullbacks at that time. There are lots of charts showing corrective pullbacks right now as the market has dropped. If the market rallies then most stocks will rally. All setups will look promising. If the market falls further then these setups will fail. Stocks showing the greatest relative strength will be those stocks making new highs. I prefer to be buying new highs in all market conditions as these are the strongest charts. Of course they don&#039;t all work out. That&#039;s why we manage our exposure (heat). (1)&nbsp; I&#039;m looking for charts with clearly market horizontal resistance in a weekly or monthly up trend. They&#039;re for my SMSF. (Weekly Darvas scans)(2)&nbsp; Next I&#039;m looking for charts near their yearly highs with shallow consolidations (in weekly charts). (Daily Darvas scans)(3)&nbsp; Then I&#039;m looking for 10d BO with volume (thrust bars) You can see these in all three of tech/a charts HSN, SIQ, YOW. (Daily pm scans)(4)&nbsp; Then I&#039;m looking for small consolidations in strong trends (hope this rings a bell, <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite1" alt=":)" title="Smile&nbsp; &nbsp; :)" loading="lazy" data-shortname=":)" /> Pav response)Every weekend I find all the stocks that are stronger than the index (XAO) over the past 13 weeks (RSC(XAO,13) &gt; 0). I throw them all in a watch list and sort through them. Charts with clear resistance levels go into a pending BO list. Charts showing corrective pullbacks go into a pullback list. Charts that are going sideways after a down trend go into a reversal list. Every PM I review those watch lists and wait for perfect low sized risk setups to buy them. There are approx 20 charts in each list. I don&#039;t let them get too big. When the chart looks poor and the anticipated opportunity isn&#039;t progressing as I&#039;d like I ditch it. I only mention this as it might help some of you organise your thoughts and procedures. For July, focus on finding those perfect BO setups. They&#039;re out there. ALU &gt; 4.80, APE, BAL, CDA, DNA &gt;0.80, FLN &gt;1.40, NUF&gt;8.00</blockquote>

[QUOTE="peter2, post: 873428, member: 13908"] I've posted my initial thoughts about expanding our BO opportunities and mentioned that we're going to look at pullbacks and some index trading. Over the last few days I've been thinking that I should slow down. There's no benefit in having too many opportunities and it could be a disadvantage. I don't want to confuse new traders and I've always suggested that they master one type of setup before adding others. For July I'm going to stick with BOs and let the other strategies appear when the time is right. It's quite possible that a BO setup occurs at the end of a corrective pullback. When I see one like that I'll point it out and we'll introduce other aspects of these pullbacks at that time. There are lots of charts showing corrective pullbacks right now as the market has dropped. If the market rallies then most stocks will rally. All setups will look promising. If the market falls further then these setups will fail. Stocks showing the greatest relative strength will be those stocks making new highs. I prefer to be buying new highs in all market conditions as these are the strongest charts. Of course they don't all work out. That's why we manage our exposure (heat). (1) I'm looking for charts with clearly market horizontal resistance in a weekly or monthly up trend. They're for my SMSF. (Weekly Darvas scans) (2) Next I'm looking for charts near their yearly highs with shallow consolidations (in weekly charts). (Daily Darvas scans) (3) Then I'm looking for 10d BO with volume (thrust bars) You can see these in all three of tech/a charts HSN, SIQ, YOW. (Daily pm scans) (4) Then I'm looking for small consolidations in strong trends (hope this rings a bell, :) Pav response) Every weekend I find all the stocks that are stronger than the index (XAO) over the past 13 weeks (RSC(XAO,13) > 0). I throw them all in a watch list and sort through them. Charts with clear resistance levels go into a pending BO list. Charts showing corrective pullbacks go into a pullback list. Charts that are going sideways after a down trend go into a reversal list. Every PM I review those watch lists and wait for perfect low sized risk setups to buy them. There are approx 20 charts in each list. I don't let them get too big. When the chart looks poor and the anticipated opportunity isn't progressing as I'd like I ditch it. I only mention this as it might help some of you organise your thoughts and procedures. For July, focus on finding those perfect BO setups. They're out there. ALU > 4.80, APE, BAL, CDA, DNA >0.80, FLN >1.40, NUF>8.00 [/QUOTE]

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