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Stage 2 is signaled when the 200‑day EMA starts turning up
  • Hiren watches the 200‑day EMA; when it moves from flat or down to an up‑trend, it indicates the stock is entering stage 2.
  • This EMA turn suggests that long‑term buyers have taken control, providing a backdrop for short‑term momentum.
  • He uses this as a prerequisite before looking for VCP or pull‑back setups.
  • The visual cue simplifies the screening process for large‑cap versus small‑cap opportunities.
HirenVijay Thakkar00:25:24

Supporting quotes

Stage 2 stock is when 200 EMA starts turning from here. Hiren
If 200 EMA is in uptrend, it means the stock is in momentum. Hiren

From this concept

Stage 2 Stock Concept

Stage 2, as defined by Minervini, is identified by the 200‑day EMA turning upward and a strong leg with volume contraction. Hiren uses this as a confirmation that a stock has moved from accumulation to a momentum phase, making it suitable for his swing setups.

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