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URL:  http://boards.fool.com/looking-for-bases-in-all-the-wrong-places-14415197.aspx

Subject:  Looking for bases in all the wrong places Date:  2/23/2001  8:07 PM
Author:  tm2001 Number:  5 of 80

One of the things we all seem to try to do in TC2000 is to write formulas to look for bases. I don't know how many hours I've spent (and wasted, other than learning some of the details of how to use the product) trying to do this. I've come to the conclusion that it really isn't feasible to write a formula to find a CWH or rectangle base. However, finding a flat base is another matter. This post contains a couple of tips if you're interested in flat consolidation bases. First, the formula below will find a base no deeper than 10% and which is at least 20 days long:

(MAXH20-MINL20)/MAXH20 <= .1

You can change the formula to suit your own needs, either making the length requirements longer/shorter or making the depth bigger or smaller.

Second, you could add a volume scan to this formula which would look for an average volume over the duration of the base which is less than the average volume over the preceding, say 50 days, by using:

AVGV20 < AVGV50.21

Put these together and you might have something to start with, namely, a chart with a flat base which meets your length and depth requirements and with declining volume.

Finally, when scanning for flat bases, I've found it helpful to change the scaling from arithm