STAGE 4 CHARACTERISTICS • The vast majority of the price action is below the 200-day (40-week) moving average. • The 200-day moving average, which was flat or turning downward in stage 3, is now in a definite downtrend. • The stock price is near or hitting 52-week new lows • The stock price pattern is characterized as a series of lower lows and lower highs, stair-stepping downward. • Short-term moving averages are below long-term moving averages. • Volume spikes on big down days and big down weeks are contrasted by low-volume rallies. • There are more down days and weeks on above-average
...more
