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
Stage 4 : Decline Stage

(a) Sellers overpower buyers

(b) Fundamental news will still be good

(c) Volumes during decline can be low as well as high
Knowing what to throw away & what to keep
The cycle repeats all over again with the start of base formation ( Stage 1)

By learning the consistent discipline of following market's message of charts we too can learn to be cool, calm & calculating while others get consistently whipsawed by the greed fear syndrome.

More from Shubham Mishra🇮🇳⚡

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Time for a new thread on the possibilities I am looking for.
Do read it completely to understand the stance and the plan.


1. The moving average structure - Many traders just look at the 200 ma test or closing above/below it regardless of its slope. Let's look at all the interactions with 200 ma where price met it for the first time after the trend change but with 200 ma slope against it


One can clearly sense that currently it is one of those scenarios only. I understand that I might get trolled for this, but an unbiased mind suggests that odds are highly against the bulls for making fresh investments.

But markets are good at giving surprises. What should be our stance if price kept on rising? Let's understand that through charts. The concept is still the same. Divergent 200 ma and price move results in 200 ma test atleast once which gives good investment opportunities.


2. Zig-Zag bear market- There are two types of fall in a bear market, the first one is vertical fall which usually ends with ending diagonals (falling wedges) and the second one is zig zag one which usually ends with parabolic down moves.

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