Stage Analysis Buying Process

Checklist for refining the buying process for using the Stage Analysis system.  To use the system properly only stocks that meet this criteria would be considered buy candidates.

The Stage Analysis Screener can be used to go through this checklist to find ideal buy candidates.

  1. Are the major stock indexes in Stage 2?
  2. Is the stock in a leading sector?
    1. Does the sector have one of the highest percentages of stocks in Stage 2?
    2. Are the stocks in the sector outperforming the major indexes?
  3. Is the stock above its 30 week moving average (MA)?
  4. Is the 30 week MA in an uptrend?
  5. Is the stock at an ideal buy point?
    1. Ideal buy point A: The stock breaks above the 30 week on a big increase in volume
    2. Ideal buy point B: The stock pulls back to the 30 week moving average after the breakout
  6. Did the breakout occur on at least 2 times average weekly volume?
  7. Is the stock outperforming the major stock indexes? (has positive relative strength)
  8. Does the stock have minimal or no overhead resistance?
  9. Is the stock not in Stage 1, Stage 3, and most importantly Stage 4!?


2 thoughts on “Stage Analysis Buying Process

Leave a Reply

Your email address will not be published. Required fields are marked *