Weinstein's Stage Analysis Definitions

Stage 1a - Start of a base. Needs much more time. Shorts get placed with tighter stops.
Stage 1 - Basing Phase. May begin accumulation.
Stage 1b - Late in base-building phase.Watch for breakout.

Stage 2a - Early in uptrend stage. Ideal time to buy aggressively.
Stage 2 - Advancing Stage.
Stage 2b - Getting late in uptrend. Watch carefully. But still a hold.

Stage 3a - Looks as if a top is starting to form. Be sure to protect holdings with a close stop.
Stage 3 - The Top Area. Start to reduce positions. Short setups beginning to look good.
Stage 3b - Has become increasingly toppy. Use rallies for at least partial selling. Can also start getting into anticipatory short positions

Stage 4a - Stock has entered Downtrend Stage. Close out remaining long positions and accumulate short positions aggressively.
Stage 4 - The Declining Stage. Avoid on the long side but keep buying shorts.
Stage 4b - Late in downtrend. Much too soon to consider buying. And time to hold shorts.