Basing

Basing refers to a stock that is forming a base with little or no trend.  The resulting price pattern is a flat line. 

Basing

Basing refers to a stock that is forming a base with little or no trend.  The resulting price pattern is a flat line. 


Basing Identification

Basing usually occurs over a long time period - weeks, months or even years.  Basing can occur after a stock price run-up as shown below.

A breakout often occurs after a stock forms a base.

Basing can also occur after a slow decline in price.

A breakout often occurs after a stock forms a base.

'Basing' Interpretation

Traders generally look for a breakout from the base and then enter into a long position. 

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