Swing trading
How do I trade a stock's Stage 2 breakout using Stan Weinstein’s methodology?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
Stan Weinstein's Stage 2 breakout strategy identifies a stock emerging from a basing Stage 1 pattern and breaking above resistance on rising volume and a rising 30-week moving average, marking the start of a sustained uptrend (Stage 2).
How it works
Traders typically confirm entry when price closes above the base's resistance level with volume well above average, and the 30-week (150-day) moving average has turned upward.
An example
A stock basing for six months, then breaking to new highs on volume 2x its average while its 30-week moving average turns up, fits Weinstein's Stage 2 breakout criteria.
Risk & limitations
Stage analysis works best in trending markets; false Stage 2 breakouts can occur during broad market corrections even when individual stock setups look technically valid. Note: this links to a general technical-analysis association resource, not a page documenting this specific named method, so verify details against a primary source.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.