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To: Boplicity who wrote (11684)	3/19/2001 9:52:37 PM
From: Boplicity	Read Replies (2) \| Respond to of 13572

<<A base is a type of consolidation that occurs following a significant decline in prices. It is a sidewise movement that disrupts the downtrend - perhaps only temporarily -- but it is at least a clue that the path of least resistance is changing. A base can appear in many different shapes. A double bottom (or W bottom) is very common. Another common base is "saucer" shaped. The broader the base the more significant the uptrend to follow is likely to be. It is generally wise to wait for an upside breakout before acting - that is, an energetic thrust above the upper limits of the base formation. However, this isn’t always possible. Some bases are themselves so high that waiting for a move above the top area poses too much risk. The best of both worlds is to be able to buy near the bottom of the base. This makes for a better risk/reward situation. However, for this you need some evidence that the base is likely to be resolved on the upside. “Buy low and sell high” is the old adage. But you need some reasons to buy or sell. Just because something is low is not a reason to buy it. -DW>> Where I always get in trouble is waiting for the breakout, then buying into what becomes an failed breakout. Greg