[isatrader]

I think this is the stage that I am most interested in, the ones that are basing, making the stage 1's. Then we can just just watch and draw the pivotal points and wait for them to break and move to a stage 2/A.

Do you have any filters/rules for identifying basing stage 1 sectors/equities?

I began that way as well, but something that I've realised more of recently is that I was ignoring the point about only trading the strongest and weakest stocks and sectors and was focusing too much on just looking for Stage 2A breakouts.

Stage 2A is the ideal time for investors to buy a stock, but it also needs to coincide with the market moving into Stage 1 / early Stage 2 in order to get the best results - i.e. late 2011 was the last example of that opportunity. So you should do less Stage 2A buying when the broad market has been in a long Stage 2 advance like currently and focus more on significant continuation moves and only a few A+ looking Stage 2A breakouts with all the key requirements of the method. As as a broad market Stage 2 advance continues, the focus on quality of your picks becomes more important.