When we speak of “wide-and-loose” price structures, we are talking about stocks that show erratic price behavior while forming the base. These stocks will typically have large price fluctuations within each week, and from week to week. Further, they will often have very steep corrections from the former high point to the trough of the base pattern. It is not unusual for wide-and-loose price structures to show declines of 50% to 60% in the cup and handle formation, which is excessive and makes for a base more prone to failure.