[isatrader]

Thanks. A lot of volatile microcaps will seemingly skip S1 altogether and go, what looks like, directly from S4 into S2. One day the 30MA is decreasing with the PPS below it, and the next, the 30MA is abrubtly increasing with the PPS breaking above it. I assume those scenarios aren't likely "buy" candidates in your book. For how long, minimum, do you like to see a stock base before you'd consider entering it, assuming the indicators signal "buy"? 1 mo, 2mo, other? Nowadays, a full cycle of stages doesn't last as long as it used to.

Personally I like to see at least 6 months in a base at a minimum to consider it, as if it breaks out earlier then you've got the resistance to deal with from people that bought it higher and have held it all the way down and now hoping to get out even. This kind of resistance dissipates with time, as people gradually give up and accept that it's not going to get back to where they bought and take the loss. 

The V shaped bottom stocks that you are talking about bypass the Stage 1 base and breakout rapidly on strong volume. It's the very strong volume that is the reason that they can move through the resistance, and often you'll then see a higher base form well above the 30 week MA. Personally, I don't trade them until they breakout from a secondary base, as until there's decent consolidation the risk is too great for me in terms of where to position the stop loss. Obviously they can be traded, but where to enter is very difficult, as although a few continue to the moon, the majority fall back hard as the resistance kicks in.