Stage Analysis in Action: Is MNTN Entering a New Stage 2 Uptrend?
Looking through today’s market movers, MNTN stood out as a great real-time example of Stan Weinstein’s Stage Analysis at work.
The chart first shows a clear Stage 4 decline, with lower highs, lower lows, price below declining moving averages, and the moving averages themselves trending downward.
Then the character begins to change.
Price stops declining and consolidates sideways for several months. The moving averages gradually flatten, selling pressure appears to ease, and price begins forming higher lows and higher highs. This is the type of character change that can signal a transition out of Stage 1 and the potential beginning of a new Stage 2 advance.
That does not automatically make Stage 2 fully confirmed. Ideally, we still want to see price break decisively above the base and resistance, supported by a rising long-term moving average, expanding volume on up moves, and improving relative strength.
For a deeper understanding of this framework, I highly recommend Stan Weinstein’s Secrets for Profiting in Bull and Bear Markets. It is one of the most foundational books for trend and momentum traders.
I also wrote a short article to Weinstein’s Stage Analysis that you can read here:
https://tradingmomentum.substack.com/p/stan-weinsteins-stage-analysis-the
