Amazon Inc - Identify the four stages of the stock trend

 

More information from previous post:

Four Stages of a Stock Trend

How to know that the stock had ended it's Bear Market

Detailed explanation can be found in the facebook closed group "Swing Trading for Monthly Income".

Another Example on How I use Stage Analysis to decide to buy or short sell?

By staging a stock into each cycle whether it is up, sideway or down. You can immediately know how to trade off this stock at the lowest risk.

But how? Simple, looking at the chart now, will you short a stock at Stage 2? Will you buy a stock at
Stage 4? So does that solve your problem by not getting you into the wrong stage of trading.

Let say that you bought a stock at Stage 2 and price is too far out from the moving average (black line),
don't worry, most mistakes made at Stage 2 will be forgiven. Why? price will pull back to the moving average to consolidate strength for the next higher upmove above the previous peak that you have entered.
As long as price continues to track along Stage 2 trend channel, don't worry pal.

If for me to trade any stock, it will be very near to the channel base with progressive volume coming
in to support the price trend. Buy when the stock is quietly moving up the channel. If it appears in the
Top Volume of the day, risk maybe getting high and I may not take a trade.

A sample of my classic Entry and Exit as shown in the chart below:

Notice: How the Propiertary Blue Diamond appeared along the base channel to trigger "Long

order" for me?

Combining Stage Analysis, SGtrader's Channel Trading & Expert Indicators - High Probability of Success.

     Stock Market goes through four stages of cycle, stage 1 - 4 with each stage plays an 
     important part to the type of trading strategy to use and take advantage of the stage. 
     This teaching is made popular by the author of " Secrets for Profiting from Bull and Bear" 
     by Stan Weinsteins.

    

     When I first came across this book, it was doubtful with the title which began with "Secrets". 
     Many authors like to use this strong word to attact readers to pickup their books and hopefully 
     buy them. 

 

    Nevertheless, I picked up the book, scanned the front and back cover for more information 
    and then the contents. As I read the book, I immediately knew that this could be the book
    that could assist me to break down the stock movement into stages and if I could use the
    right strategy for each stage, I should be ok.

    So I bought the book and treated it like a bible, I read and read each time when I had time 
    until I understood the author's intention.

    I started to employ stage analysis to the charts in 2003 and was able to detect each stage 
    as the Market unfolded. This is really an amazing skills to have. By staging the stock 
    correctly, I am able to  identify the accummulation, advancing, distribution and declining
    stages without any difficulty. The best of all, stage analysis prevents me to Sell Short a 
    stock in Stage 2 Advancing Phase or Go Long in Stage 4 Declining Phase. This knowledge 
    has kept me out of trouble by knowing which stage to apply the correct  trading strategy.

    Beside apply my own propiertary indicators and trend channel to a stock chart, I make 
    use of stage analysis as a qualifying criteria to pick up which stock to trade out of the 
    hundreds. If I am planning for a "long trade", only stage 2 will be considered, if I am 
    planning for "short sell", only stage 4 will be considered.

    With this method, I have less chance to make mistake trading in the wrong direction and
    improve my odd of success.

     Below is a sample chart on how I stage a stock for trade consideration.

Combining Stage Analysis and Diamond Trading System Can Keep Out of Trouble

Combining Stage Analysis on any chart with Propietary Diamond Trading System provide a
clear and clean understanding on how the Professionals activities are revealed to the masses
and how we can follow the footprints of the Smart Money and possibly trade alongside with
them. No matter how bullish or bearish, always guard your cutloss level.

Knowing the FOUR stages of stock cycle, can keep you out of trouble.

By identifying which stage is the stock now will keep you out of trouble. Such as never go long in stage 4.
Buying only happens on stage 2.

By charting the stock into four cycles, I can easily identify the cycle for long trade or short sell.

Cheers