Volatility increases, and moving averages begin to flatten and cross. Action: Tighten stop-losses; prepare for a trend reversal. Stage 4: The Markdown Phase
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– Sideways movement after a significant advance; high risk as "smart money" begins to exit. Stage 4: Markdown – A sustained downtrend; short positions are favored. Key Technical Tools Volatility increases, and moving averages begin to flatten
: Move to a lower timeframe (e.g., 5-minute or 15-minute) to find precise entry points based on candle patterns or pullbacks. Interplay of Trends Volatility increases, and moving averages begin to flatten
Ensure the stock is firmly in a Stage 2 uptrend and trading above a rising 20-day SMA. Volatility increases, and moving averages begin to flatten