Right Side Tightness
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 move up the right-hand side of its base, price drifts sideways AND tightens up over the course of at least 3 weeks.
What you need to know
Tight trading areas with uptrends represent zones of accumulation (demand). Volatility (trading range) may contract before explosive base breakouts.
Historical Stock Chart Examples 1A & 1B: Cabot (CBT) 1976
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Click to enlarge 1A
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Click to enlarge 1B
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ATTENTION: This is the end of Base Behaviors.
Please >>CLICK HERE<< to continue to the next category within Step 1 (Topping Behaviors).
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