Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
From IBD 8/21/14

Important to do as late stage bases are prone to failure (because everyone has now discovered this "hot" stock, so not enough buyers left). They say up to 80% of fourth stage bases fail.

How to Count? first only count valid bases. They must have completed their minimum length: 5 weeks for flat base, 7 for cup with handle or double bottom. You can't just count all the "bases" you see, a stock must rise 20% or more out of a valid base pattern before that counts in the base count. If it goes up 15% then forms another base, that is a base-on-base and doesn't count.

If a base undercuts the low of a prior (valid) base, then it resets the base count so the new base is a first stage base.
Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement