We have recently added (more) support for Weinstein’s methods in both the charts and the screener. This article will introduce these new concepts.
One of the concepts from the book that became classic is the definition of the four stages a stock can be in. This is shown on the picture below, taken from the book:
These stages basically classify the different periods in the lifetime of a stock. An important thing to understand is that Weinstein uses weekly charts and identifies the current stage based on the direction on the 30 week moving average.
We introduce the ‘Chartmill Weinstein Stage Indicator’ along with the ’Chartmill Weinstein Stage Length Indicator’, available in our charts. As indicated by their name, these indicators will display the current Weinstein stage a stock is in and the length (in weeks) of the current stage. Check out the example below:
The chart is a very good example of Weinstein’s theory and shows a very clean separation of the different stages. Unfortunately, in real life stocks do not always behave as they should
When you want to follow the trading method of Stan Weinstein, the following indicators could be useful on your WEEKLY charts:
Find a link to a chart with these indicators here. You can easily save these settings if you want to reuse them later.
The screen ‘Weekly chartmill Channel breakouts‘ was already one of our more popular screens and is also dedicated to finding long breakouts on weekly charts from a basing stage.
But also the new indicators are made available in the screener:
The new filters allow you to select the stage. Additionally you can also filter on a minimum stage length.
We have added a new screen to our shared screen list that looks for stage 1 stocks that are in this stage for over 30 weeks. Check it out here.