Just sharing the 4 stages of stock trend by Stan Weinstein.
1. Stage 1 - Base. Not the time to buy yet.
2. Stage 2 - Uptrend. Buy on the early phase.
3. Stage 3 - Plateau. Time to sell.
4. Stage 4 - Downtrend. Never buy in this stage.
Go read his book for more detail.
Note: 30 weeks MA = 150 days MA
Summary of Stan Weinstein's 4 stages of stock trend.
Stage 1 - the basing area
1. lose downside momentum and start to trend sideways
2. buyers and sellers are starting to move into equilibrium
3. volume lessen or decline
4. volume will start to expand in late Stage 1 and prices remained little change
Stage 2 - advancing phase
1. ideal time to buy when price breakout of resistance
2. usually an initial rally followed by at least one pullback close to the breakout point
3. the buyers were far stronger and overwhelmed the sellers
4. volatility increased in later part of this stage
Stage 3 - the top area
1. upward advance loses momentum and starts to trend sideways
2. price moving sideways on heavy volume
3. traders should get the heck out with their profits!
4. investors should wait and see if another basing area is forming
Stage 4 - the declining phase
1. price breaks support with either high or low volume
2. get out of this stock
3. never buy at this stage
Using Stage 1, 2, 3 approach on CNMC Goldmine.