MemCast
MemCast / episode / insight
#200-ema1#momentum2#stage-21
Stage 2 stocks respect the 10‑20 EMA range during pull‑backs
  • Once a stock is in stage 2, Hiren observes that pull‑backs typically settle near the 10‑20 EMA, providing a natural support zone.
  • He uses this zone to place entry orders (often inside bars) and tight stop‑losses.
  • The consistency of this behavior across winners (e.g., COCHINSHIP, R‑Power) gives him confidence to trade multiple stocks simultaneously.
  • This rule also helps differentiate stage 2 stocks from those merely in a flat or down‑trend where the EMA bounce is absent.
HirenVijay Thakkar00:25:09

Supporting quotes

Quote
00:25:09
“I generally use 10, 20 because I am a momentum trader.” — Hiren
Quote
01:04:01
“If the stock respects 10‑20 EMA, it is a strong mover in 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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