By Aldwin Keppens - reviewed by Kristoff De Turck
Last update: May 3, 2023
Stan Weinstein's book 'Secrets for Profiting in Bull and Bear Markets' is without doubt one of the classics books traders read. If you did not read it yet, we can certainly advise it.
We have support for Weinstein's methods in both the charts and the screener. This article will describe this.
One of the concepts from the book that became classic is the definition of the four stages a stock can be in. This is shown on the picture below, taken from the book:
These stages basically classify the different periods in the lifetime of a stock. An important thing to understand is that Weinstein uses weekly charts and identifies the current stage based on the direction on the 30 week moving average.
We introduce the 'Chartmill Weinstein Stage Indicator' along with the 'Chartmill Weinstein Stage Length Indicator', available in our charts. As indicated by their name, these indicators will display the current Weinstein stage a stock is in and the length (in weeks) of the current stage. Check out the example below:
The chart is a very good example of Weinstein's theory and shows a very clean separation of the different stages. Unfortunately, in real life stocks do not always behave as they should ;-)
When you want to follow the trading method of Stan Weinstein, the following indicators could be useful on your WEEKLY charts:
This is a chart with these indicators. You can easily save these settings if you want to reuse them later.
All these indicators are available in our stock screener. Many combinations are possible of course. You can find the Weinstein filters on the indicators tab, under the name "Weinstein".
These "Weinstein" filters allow you to select the stage. Additionally you can also filter on a minimum stage length.