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.

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Great article from @AsheSchow. I lived thru the 'Satanic Panic' of the 1980's/early 1990's asking myself "Has eveyrbody lost their GODDAMN MINDS?!"


The 3 big things that made the 1980's/early 1990's surreal for me.

1) Satanic Panic - satanism in the day cares ahhhh!

2) "Repressed memory" syndrome

3) Facilitated Communication [FC]

All 3 led to massive abuse.

"Therapists" -and I use the term to describe these quacks loosely - would hypnotize people & convince they they were 'reliving' past memories of Mom & Dad killing babies in Satanic rituals in the basement while they were growing up.

Other 'therapists' would badger kids until they invented stories about watching alligators eat babies dropped into a lake from a hot air balloon. Kids would deny anything happened for hours until the therapist 'broke through' and 'found' the 'truth'.

FC was a movement that started with the claim severely handicapped individuals were able to 'type' legible sentences & communicate if a 'helper' guided their hands over a keyboard.