Stage 1 Versus Stage 3 Identification
I sometimes see a large drop in price below the 30 week moving average followed by a rise in price and then oscillation above and below a rising and falling moving average.
posted May 09 '12 by goodsteward
The problem is I have difficulty understanding if this is short term first stage basing or actually still in the third stage. An example would be Boeing (BA) viewed today on a 1 year weekly frequency chart.
Does anyone have advice on distinguishing between the stages? Can the stage determination change with the chart timeframe?