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🇮🇳⚡

More from Screeners

You May Also Like