[pcabc]

To be a continuation it doesn't have to move into Stage 3. The vast majority of Stage 2 continuations are more minor, and are from consolidations of only one to three months that form above a strongly rising 30 week MA within Stage 2. See the initial post in this thread which has the chart from page 62 of the book that shows the ideal entry point for the trader method. That pattern is the example of an ideal Stage 2 continuation pattern.

Thanks for the refresher.