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#200-ema1#momentum2#stage-21
A strong leg with volume contraction confirms stage 2
  • Hiren looks for a “strong leg” (20‑40 % move) accompanied by a sharp increase in volume, followed by a rapid drop in volume during the pull‑back.
  • The combination signals that large players have entered, and the market is now absorbing supply.
  • This confirmation reduces false entries that might arise from mere EMA movement without real buying pressure.
  • He cites multiple examples (R‑Power, UCO Bank) where stage 2 confirmation preceded a successful swing trade.
HirenVijay Thakkar00:55:01

Supporting quotes

Quote
00:55:01
“Strong leg comes with volume contraction. The volume is getting dry.” — Hiren
Quote
00:55:06
“The stock has made a strong leg and volume is drying, confirming stage 2.” — 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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