Rapid Right Side Scale
Note: The historical stock examples given below are for EDUCATIONAL USE ONLY. They ARE NOT to be used to make buy/sell decisions in today's market. For more information, please read the HSR Terms of Use.
Description
Following a correction, price rapidly recovers most of its losses by scaling the right side of its base within 2-3 weeks.
Behavior Notes:
- The recovery in Rapid Right Side Scale doesn't necessarily have to begin at the absolute low of the correction.
- Price may stop before the old high and consolidate before breaking out.
- Moves straight off the bottom of the base into new high ground may be okay if they coincide with the start of a market uptrend.
What you need to know
Rapid right side price recoveries indicate an eagerness of buyers and show a lack of resistance.
It's a good idea to monitor stocks showing Rapid Right Side Scale because they may set up and break out in the future.
Historical Stock Chart Examples 1A & 1B: Computer Associates (CA) 1994
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Click to enlarge 1A
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Click to enlarge 1B
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Please >>CLICK HERE<< to go to the next price behavior within Base Behaviors.
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