How to analyse a base : detailed thread

1. Sept. 2022

WELCORP

1) number one most important thing for a trader is to be only in continuation structures, where there is already a prior trend

2) Retracement has to be on lower volumes. here the candle at 2 briefly undercuts the prior low and swiftly moves back up, creating a shakeout of weaker hands in the stock

3) after an earnings gap down, there is no further movement on downside

4) again the stock violates prior lows and has massive movement on the upside, confirming another shakeout within the base]

5) wide range candles on upsides forming on big volumes, down candles are on lower volumes and narrow range

6) attempt at breakout, but some supply is still left forming a long wick

7) another shakeout below the minor pivot, however prior swing low is not breached and stock maintains HH HL structure

8) volumes have contracted now at prior resistance region, supply has stopped coming to market, and bo is very likely to happen soon

9) all this is happening within a larger base exhibiting VCP characteristics, with 4 contractions already played out and price action is getting tighter

5. Sept. 2022

Trade ist aktiv

Breakout did materialise the next day itself, move sl as 222, every dip now becomes a buying opportunity in the stock