In general stocks go through 4 phases:
1. bullish sideways movement
![](http://www.imagestation.com/picture/sraid220/p81383c4d483652e81681603d4c63f7ae/ebb15755.jpg)
2. trend up
![](http://www.imagestation.com/picture/sraid220/pd6b9ffc2c5bb6ca4d222c1343c67865a/ebb15754.jpg)
During trending up process, there are two pullback characteristics
a. First degree (pullbacks lasting less than 4 days) b. Second degree (pullbacks lasting less than 14 days)
![](http://www.imagestation.com/picture/sraid220/pdff4fbe633fdec435f3c0eaa800c1001/ebb15757.jpg)
c. Longer than 14 days( a new base is under way)
![](http://www.imagestation.com/picture/sraid220/p28c5ac65c90b67af74309d76efa0fe5f/ebb156cd.jpg)
3. bearish sideways movement
![](http://www.imagestation.com/picture/sraid220/pf0e7bbeaadb341673709e399deef02e6/ebb156d3.jpg)
4. trend down
![](http://www.imagestation.com/picture/sraid220/pd7a98d6a5ffc04300fc6d8859f0d0f77/ebb156ce.jpg)
Out job is to identify which stock is in bullish trading range and which is in bearish. Again price and volume are the most factors to do this.
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