Kasauti Methodology Glossary
Technical-analysis glossary
Definitions for the methodology and market-structure terms used across Kasauti, with direct paths into the Journal, PARKHO stock audits, free tools and the Screener.
Minervini
6 terms
SEPA Criteria
The eight structural parameters Mark Minervini uses to identify stocks in a position of strength — before they make their largest moves.
Trend Template
Minervini's checklist for confirming a stock is in a Stage 2 uptrend — the structural foundation required before evaluating any entry point.
Superperformance
Minervini's term for the phase in which a stock delivers extraordinary gains — typically 100–1,000% — within a compressed timeframe during a Stage 2 advance.
Volatility Contraction Pattern
A base pattern characterised by a series of successively tighter price contractions, indicating diminishing selling pressure and the potential for a high-powered breakout.
Pivot Point
The precise price level at which a stock exits a base pattern on above-average volume — the optimal entry zone in Minervini's methodology.
Base Counting
The practice of tracking how many consolidation bases a stock has formed in its current advance — earlier bases carry higher odds of success than later ones.
Weinstein
6 terms
Stage Analysis
Stan Weinstein's four-stage framework for understanding where any stock sits in its long-term cycle — and which stage is the only one worth owning.
Stage 1 — Basing
The first stage in Weinstein's cycle — a period of sideways consolidation after a prior decline, in which the stock builds a base before a potential advance.
Stage 2 — Advancing
The advancing phase in Weinstein's cycle — a sustained uptrend above a rising 30-week moving average, confirmed by expanding volume. It is the only stage in which new positions are considered structurally sound.
Stage 3 — Topping
The topping phase in Weinstein's cycle — where a prior advance loses momentum and the stock begins to distribute before the eventual decline.
Stage 4 — Declining
The declining phase in Weinstein's framework — where institutional selling drives price below all key moving averages. Position traders have no participation during Stage 4.
30-Week Moving Average
The primary trend indicator in Weinstein's Stage Analysis — analogous to the 150-day moving average, it defines the boundary between Stage 2 and Stage 4.
O'Neil
5 terms
CAN SLIM
William O'Neil's seven-factor system for identifying institutional-quality growth stocks before their major advances on the stock market.
Cup and Handle
A base pattern identified by William O'Neil — a rounded consolidation followed by a tight handle formation, preceding a breakout to new highs.
Follow-Through Day
A market confirmation signal in O'Neil's methodology — a day when a major index closes significantly higher on above-average volume, confirming a potential new uptrend.
Distribution Day
A session in which a major index closes lower on higher volume than the prior day — a signal of institutional selling that, when clustered, warns of a market top.
Accumulation Day
A session in which a major index closes higher on above-average volume — evidence of institutional buying and confirmation of underlying market strength.
Darvas
4 terms
Darvas Box
The price consolidation zone identified by Nicolas Darvas — a rectangular range defined by the recent high and low, within which a stock pauses before its next advance.
Box Breakout
The moment a stock closes above the upper boundary of a Darvas Box on above-average volume — the entry signal in Darvas's methodology.
Trailing Stop
Darvas's risk management technique — placing a stop below the floor of the most recent box, allowing profits to run while protecting against reversal.
New High New Box
Darvas's principle that each new high in a stock's advance establishes a new box — the trailing stop rises with each box, locking in gains as the stock climbs.
Market Structure
7 terms
RS Rating
A score from 1 to 99 that ranks a stock's price performance against the entire NSE universe over the past 52 weeks — the higher the score, the stronger the market leadership.
Relative Strength
The comparison of a stock's price performance against a benchmark index or the broader market — a measure of whether a stock is leading or lagging the market.
Sector Rotation
The cyclical movement of institutional capital between market sectors as the economic cycle evolves — understanding rotation is essential for identifying where the next leaders will emerge.
50 DMA
The 50-day simple moving average — the primary short-term trend indicator used in SEPA criteria, representing approximately 10 weeks of trading.
150 DMA
The 150-day simple moving average — Minervini's medium-term trend indicator, equivalent to Weinstein's 30-week moving average and a key SEPA criterion.
200 DMA
The 200-day simple moving average — the primary long-term trend indicator used across all major methodologies. Price above a rising 200 DMA is a fundamental structural requirement.
Moving Average
A continuously recalculated average of a stock's closing prices over a defined period — the foundational tool for identifying trend direction and structural support.
Kasauti
4 terms
PARKHO
Kasauti's stock-level methodology audit pages — combining structural criteria, Weinstein Stage Analysis, Relative Strength and moving-average context in one research snapshot.
Methodology Pulse
A Kasauti research concept for summarising how coherently market structure aligns with a defined technical framework.Reference
Deployment Regime
A Kasauti research concept for describing whether broad market structure is supportive, mixed or defensive.Reference
Stage 2 Density
The share of a market or group that is structurally classified in Weinstein Stage 2 — a breadth-style way to describe participation.Reference
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