Stan Weinstein Theory on NetflixThe 4 Market Phases
Stan Weinstein describes the evolution of stocks in four main phases:
- Phase 1: Accumulation
The market is flat after a prolonged decline. Smart investors start buying.
- Phase 2: Uptrend
The price breaks a key level and rises above the 30-week moving average, which is rising. This is the ideal phase to buy.
- Phase 3: Distribution
The market stabilizes after a rise. Big investors sell, and the moving average stabilizes. This is the beginning of the end of the uptrend.
- Phase 4: Downtrend
The price breaks a key support, the moving average goes down. Avoid buying or selling to limit losses.
Key Indicators
30-week moving average: In an uptrend, the price is above. In a downtrend, it is below.
Volume: Increasing volume during breakouts confirms the strength of the trend.
Weinstein advises buying early in Phase 2 and selling early in Phase 4 to follow major market trends.
Analysis made in collaboration with @Yannick1961