Here’s a gauge for testing an uptrend’s relative youth: How many stocks in the IBD 50 are early stage, and how many are old and stale?
For realistic reasons, stocks that have broken out of second-stage bases and are extended are thrown in with the late-stage stocks. That’s because they aren’t actionable when extended and could be third-stage with the next consolidation.
Also included on the negative side are any stocks that broke out and triggered the 8% sell rule. Those are included on the negative side because becoming actionable will take too much time.