Stan Weinstein's four stages: the only chart framework I'd teach first

Weinstein’s framework is old, simple, and still the fastest way to stop losing money on falling stocks.

The four stages

1. Stage 1 — basing. Sideways after a decline. No trend, no hurry.
2. Stage 2 — advancing. Breakout above the base on heavy volume, with the 30-week average turning up. This is the only stage worth owning.
3. Stage 3 — topping. Momentum fades, the average flattens, volatility rises.
4. Stage 4 — declining. Below a falling average. Nothing to do here.

Why the 30-week average

It’s slow enough to ignore noise and fast enough to catch a genuine change of character. Weinstein pairs it with volume: a breakout without a volume expansion is a rumour, not a signal.

Your own take goes here — a recent Nifty or sector chart, marked up by stage.