Stage Analysis 👇
Source : Stan Weinstein's Secrets For Profiting in Bull and Bear Markets
1. Stage Chart 👇
Stage 1 : Basing Area
Stage 2 : Advancing Stage
Stage 3 : Top Area
Stage 4 : Declining Stage
Stage 1 : Basing Area
(a)Buyers & Sellers are starting to move into equilibrium
(b) Several Swings b/w support & resistance
Stage 2 : Advancing Stage
(a) Initial rally & a pullback
(b) MA Starts to trend upwards
(c) Successive leading peaks
Towards the end of Stage 2 advance
(a) Erratic price swings
(b) Angle of ascent of the MA will slow down
Stage 3 : Top Area
(a) Buyers & Sellers are again at equal strengths
(b) Moves are sharp & choppy
(c) Price will move back & forth along the MA