1990issue C111-5
Weekly four-stage mapping with average, range, and volume
A weekly stage-map classifies a market as basing, markup, balance, or markdown from high-low-close bars and a 30-week moving average. The same checklist is applied first to a broad market index, then to subgroups, then to names that share the stronger groups' stage.
- Weekly stage mapping uses high-low-close bars plus a 30-week moving average and places the market in one of four stages.
- Stage 2, the markup-trend, lasts while price remains above a rising 30-week average and advances carry more volume than corrective declines.
- The same weekly checklist is applied first to a broad market index, then to subgroups, then to individual names that share the stronger groups' stage.
- Chart reading is framed as an attempt to interpret the current balance of demand and supply rather than as a field opposed to fundamental work.
What the weekly map records
Weekly stage mapping uses high-low-close bars plus a 30-week moving average and places the market in one of four stages. The stage-map is a four-state weekly classification of basing, markup, balance, and markdown.
The moving average is a 30-week average of weekly prices. It is a slow baseline that lags the market and is read as rising, flat, or falling.
Stage 1 and the move into markup
Stage 1 is an accumulation-range: a post-decline sideways band that trades on both sides of the average while activity dries up. Price works both above and below the moving average while share volume contracts.
The described handoff into stage 2 is a move above the stage-1 range on expanded volume after rallies begin to attract volume and declines lose volume. Those prior sideways ranges are the support and resistance whose upper and lower edges a later break must clear or fail.
Stage 2 is a markup-trend. It lasts while price remains above a rising 30-week average and advances carry more volume than corrective declines. A rising 30-week average is treated as evidence that capital flow into the name has been positive over a lookback longer than half a trading year. Volume-price analysis compares volume on advances with volume on declines to test whether demand or supply is in control.
Balance, then markdown
Stage 3 is a balance-range: a two-way band around a nearly flat average. Price swings through that nearly flat 30-week average, often on heavy two-way volume, until later action shows whether the range is only a pause or a top.
Stage 4 is markdown after the stage-3 range fails from below, with a declining 30-week average. Price then sits below that failed range and the declining average. The break can print on either heavy volume or light volume.
Index first, then groups, then names
The same weekly checklist is applied first to a broad market index, then to subgroups, then to individual names that share the stronger groups' stage.
Chart reading is framed as an attempt to interpret the current balance of demand and supply rather than as a field opposed to fundamental work.
All readings on this track · 19 readings
- 1989T-bond volume-price boxes and a withheld rectangle top
- 1990Constructing ease of movement from volume-scaled boxes
- 1990Weekly four-stage mapping with average, range, and volume
- 1996Constructing volume-confirmed average-cross entries
- 1996Constructing four MFI bar states from range and volume
- 2001Building in-gear volume-price overlays
- 2004Constructing index volume for price-volume signals
- 2004Auditing volume-on-retest rules for prior highs and lows
- 2004Wait-rule collapse in a mistaken sale cascade
- 2005Constructing a volume and change weighted moving average
- 2005Daily average support and Friday volume holds
- 2007Match a volume-price oscillator to a range, not to a policy rebound
- 2008Volume confirms chart pattern breakouts
- 2011Color-coded volume bars for rule-based swing entries
- 2012Go or no-go checklist at repeated resistance
- 2012Pocket-pivot volume rules before a later breakout
- 2014Constructing defended price lines from volume spikes
- 2016Closing score from range location as a volume-checked sentiment filter
- 2019Volume follows price as auction state