🟨 HOW TO trade stocks in DEEP BASES

7 dic 2022

A DEEP CORRECTION = a correction more than 25-30% within the consolidation period.
Sometimes a stock might correct more especially in a volatile bear market. Deeper correction are more risky as they are more failure prone - use these ideas to put probabilities on your side.

The checklist
1. You want as much time away from that correction as possible (at least 1 year)
2. Many bases (iterations) on the right side (currently 3)
3. Explosive moves over the bottom💥 (currently +100%)

General Rules
The bigger the base the more time you want. Always look to the left to see:
- Where is the supply?
- How much is the supply? (could use Volume Profile free tools on Trading View)
- How is the stock acting as it reaches this supply? (Sharp pullbacks or controlled pullbacks)