I’m currently trying to expand/apply Stan Weinstein’s stage analysis to Forex! Some notable differences with zero sum charts and regular upwards skewed stocks.
1- volume as confirmation. not quite identifiable in the 2x prev 4-5 weeks manner. (some crescedo vol. observed on breakdowns)
2- more sinusoïdale looking charts
3- not sure the element of fear is as present (for breakdowns) or greed (for breakouts)
4- seems more dirven by strong underlyning conditions than human emotion… (overnight interest rates, outlook, etc)…
Here is my playlist…
Let me know if you guys had some experiences with that!
Stage analysis permits you to ride a trend for most of it’s run. You’ll never enter at the bottom, you’ll never exit at the top. But if the trend last wether it be 4 months or 12 months, then you’ll ride most of it.
Stan Weinstein’s used weekly charts, but I you could apply this to ANY timeframe.
Compared to classic chart trading, where you have an implied mesured move added to the breakout line. When target reached, you’re out, and need to wait for next pattern/signal.
Sometimes using a mesured move as a target is most optimal.
In the following case, there were no classic chart pattern to get you straight from ~132.00 to ~171.00 for the gbpjpy forex pair
1- 1 trade to enter, 1 trade to exit
2- about 545 days for ~3900 pips
3- avg 7 pips each calender day
4- ~9$ value per pip, for a total of 35100$.
4- minus ~195$ interest paid for 13080 hours held on a 100k position size, with a usd base account
Hardest part is not micro managing, self-sabotage . Due to length of time with that open position, you’ll have MANY occasions to interfere and deviate from framework.