There are generally four stages that you can identify on stock analysis charts, such as those on Trading View:

Stage 1: Basing Phase
During this stage, businesses are working on building their models and fine-tuning operations to achieve steady, but very slow, profitability.

Stage 2: Mega Compounding Phase
In this stage, the business experiences rapid growth and high profitability, thanks to previous investments in capital and sales channels. The company shows strong momentum, and its stock price may hit all-time highs or several 52-week highs.

Stage 3: Profit-Taking Phase
After the high growth in Stage 2, the business begins to show signs of slower growth. Investors who made good returns in Stage 2 may start selling their stocks to lock in profits.

Stage 4: Downtrend Phase
In this final stage, stock prices may fall due to various factors, such as business defaults, lack of revenue or profit growth, emerging new trends, or management struggles.
Chart PatternsTrend AnalysisWave Analysis

Wyłączenie odpowiedzialności