Flat Base Chart Pattern

Stocks that have vast price gains typically will stair - step upward and form Flat Bases before resuming their up trend. This vitality may occur several times as a stock remains in an up trend and could last from a few days to several weeks depending on the situation. Flat Bases are characterized by small daily trading ranges with hole being lower than normal. Although it doesn’t ensue every time, the longer a stock remains in a Flat Base, the greater the price appreciation may be when the stock breaks out. Lets look at some examples beneath. Here is a sample chart of EMLX. Notice how it formed a Flat Base ( small trading range ) from July through mid - August and then broke out of the base in on elaborating volume ( point A ). It then formed an extra Flat Base in September and broke out of this pedestal in early October and also skyrocketed from $80 to $200. Another case in point of a stock that had only some Flat Bases was KIDE. Notice in May and June the small regular trading ranges with down-hearted habitat. Thus in early July the stock broke out with upgrowth area ( point A ) and went from $10 to $30 by mid - August. KIDE then formed another Flat Base from mid - Appreciative though early October and then exploded peripheral of the base on higher volume ( point B ). The stock thereupon went from $30 to $90 in four weeks. The deface benefit from July to November was 800 % ( $10 to $90 ). Another model of a stock that was in a Flat Base pattern for a noteworthy amount of time was MCOM. Notice that it traded sideways for at least 3 months before breaking out of the base on stable volume ( point A ). In this case MCOM went from $10 to $55 in 4 weeks for a return of 450 %. As you can see it, by finding stocks that reveal certain chart patterns ( Cup and Handle, Double Bottom and Flat Base ) can guide to strong price appreciation when they breakout on physically powerful volume.