What is a base on base pattern?
A base on base pattern is bullish continuation pattern. It occurs to strong stocks that are in a bearish environment. In these stocks they will still be in a little bit of an uptrend.
They will break out to the upside. However there is not enough buying pressure to move it up further. This is what happened to this stock.
If the stock is not strong enough it will eventually be pulled down. Be careful when trading this type of stock for that reason.
If a stock is showing a base on base pattern during a bears market that means it is a strong stock. It is strong enough not to be pulled down with the rest of the stocks.
When the markets turn bullish again you can look at these stocks to show strength and leadership. They will typically have larger gains. Other Oscillators
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