Wyckoff, therefore, focused exclusively on potential long positions when the broad market index was trending up. Conversely, he focused on potential short positions when the broad market index was trending down. In general, there are four steps in the stock selection process. First, chartists begin by singling out a particular group or sector within the broader market that shows relative strength. Second, look for stocks within this group that are showing relative strength. Third, look for signals using chart patterns and volume. Fourth, calculate risk and reward to ascertain the feasibility of a trade.