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Chart Pattern : The Flat Base Pattern

THE FLAT BASE PATTERN

The Flat Base is a stock pattern that goes horizontal for any length of time. Very powerful advances can be had from this formation. What we look for is volume drying up as the stock stays at or about the same level going horizontally.

Draw a trend line across the top of this formation. As the stock proceeds through the trend line, the stock is bought as it breaks the trend line and volume increases.

forex chart

forex chart
HERE IS A SAMPLE CHART WITH A FLAT BASE PATTERN

 

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