PROTECTED SOURCE SCRIPT
Stage 2 Bases

Stage 2 Bases
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What is a Stage 2 Base?
- Stage 2 = Advancing Phase in Stock price cycle.
- Stocks in Stage 2 are in uptrend (50 > 150 > 200-day moving averages).
- A pause (consolidation) in an ongoing uptrend.
- Price moves sideways for weeks to months after an advance.
- Builds energy for the next leg up and allows accumulation.
- Strong prior uptrend before the base.
- Base length typically 4+ weeks.
- Base depth generally 10–40% pullback.
- Volume contracts during consolidation.
- Breakout occurs above prior highs on strong volume.
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Why They Matter?
- Institutions accumulate shares during the base.
- Resets overbought conditions without breaking the trend.
- Valid breakout often leads to next strong rally.
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How to read this indicator?
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Key Characteristics
- Works on Daily and Weekly Timeframes
- Past Stage 2 Bases are marked as well
- Base Counts, Depth, Consolidation Range, Move from one base to another and No of days/weeks move are marked
- Base 1 are marked when a stock is coming out of Stage 1 (After Golden cross 50SMA > 200 SMA)
- Base count is increased when a move from base is more than 20% (Can be modified in Indicator settings)
- Base resets to 1 when the base undercuts the previous base
- Base markings are stopped when the 200 SMA > 50 SMA
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Indicator Settings
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Limitations
- Base markings are stopped when the 200 SMA > 50 SMA but if a stock doesn't go down beyond 40% and the Price action is good within the base then its good to keep the stock in watchlist. This scenario is not handled.
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Disclaimer
- This indicator is created purely for educational and informational purposes. It is not a buy or sell recommendation, nor should it be considered financial advice. Trading and investing in the stock market involves risk, and you should do your own research or consult with a qualified financial advisor before making any investment decisions. The creator of this indicator is not responsible for any losses incurred by using this tool.
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受保护脚本
此脚本以闭源形式发布。 但是,您可以自由使用它,没有任何限制 — 在此处了解更多信息。
免责声明
这些信息和出版物并不意味着也不构成TradingView提供或认可的金融、投资、交易或其它类型的建议或背书。请在使用条款阅读更多信息。
受保护脚本
此脚本以闭源形式发布。 但是,您可以自由使用它,没有任何限制 — 在此处了解更多信息。
免责声明
这些信息和出版物并不意味着也不构成TradingView提供或认可的金融、投资、交易或其它类型的建议或背书。请在使用条款阅读更多信息。