# What is Stage Analysis

> Base, advance, top and decline around the 30-week average, for stocks and the whole market.

Canonical: https://getmarketstrength.com/watch-what-is-stage-analysis
Last updated: 2026-11-07

English · 2:41 · Published 2026-10-28

Base, advance, top and decline around the 30-week average, for stocks and the whole market.

## What the video says

Every stock goes through four stages, again and again. Base, advance, top, and decline. Knowing which stage a stock is in can save you from many bad trades.

This idea comes from Stan Weinstein. He used one simple tool: the thirty week moving average, which is about the same as the hundred and fifty day average.

Stage one is the base. After a long fall, the stock stops going down. It moves sideways, and the moving average flattens out.

Sellers are tired, but buyers are not in a hurry yet. A stage one base can last for months.

Stage two is the advance. The price breaks out above the base, and above the average. Then the average itself turns up.

Higher highs, and higher lows. This is the stage most trend traders want to own, because this is where the big gains happen.

Stage three is the top. The rally gets tired. Price swings above and below the average, and the average goes flat again.

It can look like a stage one base, but it comes after a big rise, not after a fall. That is the difference.

Stage four is the decline. Price falls below the average, and the average turns down. Lower highs, and lower lows.

In stage four, a stock that looks cheap can keep getting cheaper. Many traders simply avoid it.

Then, after a long decline, a new base forms, and the cycle starts again.

Here are the four stages on a real Market Strength chart, with the hundred and fifty day average.

The base, the breakout into stage two, the rounded top, and the fall below the average.

Stages work for the whole market too. When most stocks are in stage two, it is a healthy market. When stage four grows, it is time to be careful.

On Market Strength, the Market posture bar in Workspace shows how many stocks are in each stage today.

And every stock shows its own stage, next to its RS rating. In the Stock Screener, you can filter for stage two only.

Market Strength is an education and research tool, not investment advice.

[Read the guide: Stage analysis screener](https://getmarketstrength.com/stage-analysis-weinstein)

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Source: Market Strength Scanner (https://getmarketstrength.com). Educational content, not investment advice. Cite with the canonical URL above.
