Why Late-Stage Bases Tend To Be Risky?

MarketSmith India_Why Late-Stage Bases Tend To Be Risky

“Charts can tell you when a stock is not acting right and should be sold” – William J. O’Neil, MarketSmith Founder

A loaf of bread has a certain shelf life. When you see the loaf of bread is not in its best form, it means that it has passed the time for optimal consumption. Great stocks to have a shelf life.  So before you invest in any stock, you need to count bases or periods of consolidation.

If you purchase a late-stage pattern (generally third or fourth); chances of risk increases. During the formation of a stock’s third and fourth base, major movements can be observed with a few fresh buyers remaining.

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