In general stocks go through 4 phases:
1. bullish sideways movement
2. trend up
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)
c. Longer than 14 days( a new base is under way)
3. bearish sideways movement
4. trend down
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.
