Base-On-Base Pattern Is More Powerful Than It Looks
Let's say you buy a stock when it breaks out of its base and clears its buy point, but then it starts to pull back. What to do? One option, of course, is to sell all or most of the position to protect whatever profit you have. Another would be to hang on to see if the stock can rebound or form a base-on-base pattern. A base-on-base pattern, like the name suggests, is a base that forms on top of a base. It usually occurs during a period of market
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