STAGE 1 CHARACTERISTICS • During stage 1, the stock price will move in a sideways fashion with a lack of any sustained price movement up or down. • The stock price will oscillate around its 200-day (or 40-week) moving average. During that oscillation, it lacks any real trend, upward or downward. This dead in the water phase can last for months or even years. • Often, this basing stage takes place after the stock price has declined during stage 4 for several months or more.
