Stage 2 Bases
Tradingview Indicator
Description
The Stage 2 Bases Indicator helps traders visualize and identify advancing base structures during Stage 2 — the most profitable phase in Mark Minervini’s stock market cycle. It marks, measures, and tracks consolidation patterns within an uptrend to help traders spot potential breakout setups.
What is Stage 2?
- Stage 2 = Advancing Phase in Mark Minervini’s stock market cycle.
- Stocks in Stage 2 are in an uptrend (50 > 150 > 200-day moving averages).
- This is where big winners form and compound returns.
What is a Stage 2 Base?
- A pause (consolidation) in an ongoing uptrend.
- Price moves sideways for weeks to months after an advance.
- Builds energy for the next leg up and allows accumulation.
- Strong prior uptrend before the base.
- Moving averages aligned bullishly (50 > 150 > 200).
- Base length typically 4+ weeks.
- Base depth generally 10–40% pullback.
- Volume contracts during consolidation.
- Breakout occurs above prior highs on strong volume.
Why They Matter
- Institutions accumulate shares during the base.
- Resets overbought conditions without breaking the trend.
- Valid breakout often leads to the next strong rally.
How to Read This Indicator
- Complete Stage 2 bases in Daily Timeframe
- Complete Stage 2 bases in Weekly Timeframe
Key Characteristics
- Works on Daily and Weekly timeframes.
- Past Stage 2 bases are marked as well.
- Displays Base Counts, Depth, Consolidation Range, and Duration (days/weeks).
- Base 1 marks when a stock transitions from Stage 1 (after Golden Cross — 50 SMA > 200 SMA).
- Base count increases when the move from the base exceeds 20% (modifiable in settings).
- Base resets to 1 when the base undercuts the previous one.
- Base markings stop when 200 SMA > 50 SMA (trend reversal).
Limitations
Base markings stop when 200 SMA > 50 SMA, but if a stock remains strong within the base and doesn’t drop more than 40%, it’s still worth watching.
This scenario is not handled by the indicator.
Disclaimer
This indicator is created purely for educational and informational purposes.
It is not a buy or sell recommendation, nor should it be considered financial advice.
Trading and investing in the stock market involve risk. Please conduct your own research or consult with a qualified financial advisor before making investment decisions.
The creator of this indicator is not responsible for any losses incurred by using this tool.