
Trading with stage analysis, the Stan Weinstein way
Stage analysis trading strategy is a relatively popular trend trading strategy that was discussed in detail by Stan Weinstein, in the book, Secrets for Profiting in Bull and Bear markets. While the basic principle of trading with stage analysis is merely following the trend, Stan Weinstein gives a more structural approach to this trading strategy.
According to Weinstein, stage analysis uses chart patterns in order to derive the four stages in a security's price. Once the stages are determined, there are specific guidelines that determine when to buy and sell. Stage analysis was initially described for the stock markets, but could very well be used for the forex markets as well. With stage analysis, traders can hold on to positions and helps to enter the trend at a relatively early stage...