Trading With Stage Analysis
Stan Weinstein outlined the principles of stage analysis in his 1988 book, Stan Weinstein’s Secrets for Profiting in Bull and Bear Markets. This classic text opened the door for many non-professionals to execute their first short sale positions because his detailed description of the most favorable timings for this strategy overcame the natural discomfort to sell first and buy second.
But his timeless concepts go well beyond a few short-selling principles. The book organizes market action into segments that evaluate price dynamics within a continuous cycle of bottoms, breakouts, uptrends, tops, breakdowns and downtrends. Each of these stages generates a variety of trading and investment opportunities that capitalize on current…