Flat Bases & Tight Areas

Shallow sideways ranges that form after an advance, why tightness matters, and how to spot the pivot in a flat base.

A pause after a run

A flat base is a tight sideways range that forms after a stock has already moved up. Instead of a deep pullback, price holds within a narrow band for several weeks while the stock digests its gains. Traders often describe it as a stock "resting" before its next move.

Flat bases matter because they show strength. After a good run, many stocks pull back hard as early buyers sell. A stock that barely gives ground is telling you that buyers are absorbing that selling.

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