[mkoza]

Sorry, another beginner question:

When a stock is moving from a S4 to a S1, when drawing out your initial support and resistance lines, are you using the daily or weekly?

Thank you

Start with the weekly charts. But one thing to note is that Stage 1 bases are fluid, as the levels can shift through time, with Upthrusts out of the top of the range and shakeouts at the lows. So don't think of the initial levels as hard lines, as they can shift over time depending on how the price action develops.

The easiest place to start to identify the initial range is to mark the Selling Climax (SC) and the Automatic Rally (AR) – see Accumulation Schematic #1 attached – which are terms from Richard Wyckoff's method. But learning the Wyckoff method structures can really help you with Stage Analysis, as Wyckoff has a much deeper level study of base structures, and hence it can really help with identifying Stage 1 and Stage 3 behaviour.

If you look in the Resources thread there's multiple links to materials that can help you learn some Wyckoff. Here's the link: https://www.stageanalysis.net/forum/Thre...8#pid18348

Accumulation: Wyckoff Events & Phases

Got it and one more follow up if you dont mind.

Re: Wyckoff... I've noticed you keep the initial resistance, then add additional lines at the UTA or Spring, do those become the new resistance lines in terms of the "official breakout" ?

As always, thank you very much for the quick and in-depth response