Increasing Volatility Within Base
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
After an advance, price begins to base/consolidate, but it does so in a wild manner.
What you need to know
Unless the market is volatile and erratic, it's not normal for a stock to show wild swings within its basing structure.
In a healthy base within a non-volatile market, volatility may contract as trading quiets down.
You'll often see wild swings within a base after a stock has already made a large move higher, which is a warning sign to respect.
Historical Stock Chart Examples 1A & 1B: Jakks Pacific (JAKK) 2000
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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 Topping Behaviors and Step 1.
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