Stage Analysis & Trailing StopsWhy Stage Analysis
Stage Analysis is the very first thing you need to get right or everything else will be unnecessary, according to Mark Minervini.
Based on his study 98% of all big winners, dating back from 1800s to current day have been in confirmed Stage 2 BEFORE they made their big move! This makes Stage Analysis a foundational knowledge for anyone who trades the market.
History of Stage Analysis
Stan Weinstein outlined the principles of Stage Analysis in his 1988 book, Stan Weinstein's Secrets for Profiting in Bull and Bear Markets.
This classic text opened the door for many non-professionals to execute successful trading system based on his detailed description of the best prospects for long buys and short sale positions. However, his classic concepts have a far wider reach — it is a premise that gives the best time for a trader to enter and trade the market.
It divides market action by 4 segment (Stages) which analyzes prices dynamics over a continuous cycle that includes bottoms, breakouts, top peaks breakdowns and downtrend occurrences.
