[yellowcup]

My question is, how can we differentiate a Stage 2B on a Stage 3.

The very first thing you'll see is a Change of Behaviour which will be a more signifiant reaction than you've seen during the rest of the Stage 2 advance. This may have a signs of an initial Buying Climax followed by what is a known as an Automatic Reaction which takes it down to a swing low and then rallies into a Secondary Test of some kind, which then fails and a Trading Range begins to form. The reaction will have bigger ranges on the price bars on the downside than previously and volume will usually increase as large operators start to distribute their positions near the highs on each rally. All of this will show up as a Change of Character as the initial part of the trading range completes and it moves into the testing phase of the base structure.

I recommend learning some Wyckoff, as it will really help you to differentiate between re-accumulation bases in Stage 2 and bases that are showing a Change of Behaviour and signs of distribution and moving into Stage 3.

@isatrader,

Thank you for your response.
Definitely, I will read more wyckoff theories.