Base Breakouts
Traders who are watching a base formation in progress, and intending to buy the stock if and when it breaks out, often would like to buy it while it's still in the base, if they can have some assurance that the breakout is imminent. There is a technique using a MIDAS resistance curve that can identify such situations, giving the trader an entry that is lower than the breakout price. The prerequisite is that the base needs to be at least a half float long. Then, one looks for a high price bar within the base, somewhere around the middle. Next, you find the starting point for an R curve, back in the downtrend that preceded the base, which fits to that high price bar in the middle of the base. When price breaks above this R curve, ...
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