The flat-base pattern is considered
to be a second-stage pattern, usually occurring after a stock has
broken out of a cup-and-handle or double-bottom type base:
Things
To Watch:
Pattern
usually occurs after at least a 20% gain from a previous breakout.
Stock
trends sideways for at least 5 weeks.
The pattern
does not correct more than 10 to 15%.
The pattern
tends to send market players elsewhere for more exciting opportunities.
Watch
for a high volume breakout through the high of the pattern for a
Pivot-Buy.
Examples:
