The red squares I create when the stock is moving sideways and I am trying to work out what the stock is doing within that base.
The theory is, once it breaks out, I tend to jump In. But If I am receiving signals that I am confident within, I will buy within the box and enjoy the breakout. Like I did with AZS last week, but most of that was based on FA as well
I have erased the ascending triangle and placed a third base as another example, one of mark Minervini theories is the, the PB should be getting smaller and smaller with low volume within the base and wait for the Pivot point. ( which is the breakout signal) I have found this has worked for me on several stocks of late.
I also use them sometimes to trade with in that base, like CHK I picked it up 3 times on the bottom of the base before it broke down and I got caught with the last break down. Look at CDT you could have gone 13 to 16 several times.
