Flat-Base Breakouts on Heavier than Normal Volume

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Strategies & Market Trends
Flat-Base Breakouts on Heavier than Normal Volume

An SI Board Since June 1998

Posts	SubjectMarks	Bans
34	2	0

Emcee: DD™	Type: Unmoderated

Introduction Compact

According to William O'Neill of IBD fame, one of the most profitable trading/investing techniques is to find stocks which are emerging from a meaningful base on heavy volume.

The basing pattern can occur flowing a significant run, or conversely, from a correction/crash. In either case, emergence from the base on heavier than normal volume can be an indication that "smart money" is getting back into the stock for a significant upside move (especially if there is no news to account for the breakout).

Remember, as Mad Monk wold say, "volume precedes price, which precedes the alibi (news event)."

From a risk standpoint, flat-base breakouts following a correction/crash are the least risky, since much of the bad news has already been discounted in the price of the stock. These are the types of the stocks that will have the greatest emphasis on this thread.

No penny stocks and no stocks under $5/share are allowed on this discussion thread.

Lets all make some real money.

DD

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Reply	Message Preview	From	Recs	Posted
34	DD, two breakouts from long bases attracted me yesterday and I bought profitabl	rakitup	-	3/3/2000
33	Grant, it doesn't seem to be doing much at $5 --- 18% off its 52 week high	rakitup	-	2/1/1999
32	Take a look at Cendant (CD). Today could be the day.	Dr. Godless	-	1/28/1999
31	Am I allowed to mention a stock that's just a bit under $5? SIGM seems to	Grantcw	-	1/19/1999
30	I like it too, but it is very thinly traded,limiting liquidity. Only 400 shares	rakitup	-	1/18/1999
29	Why? CNKT is volatile as hell and is $8 off its 52 wk. high but only $6 off it	rakitup	-	1/18/1999
28	Don.....I've had some good luck trading volume spikes....I am new to this	scotty	-	1/12/1999
27	DON't miss SPCT! This stock is breaking out of a major long term base! I	StockVixen	-	1/12/1999
26	Liquidation World (LQW.TO, LIQWF) has recently broken out from a very convincin	Dr. Godless	-	1/9/1999
25	Breakouts seem to have lost everyone's interest. That's a shame, becau	rakitup	-	1/5/1999
24	Hi DoubleD. If you read my 8/15 post about WAG and now check the chart you can	rakitup	-	11/24/1998
23	Hello Double D. I was just wondering what you thought of DMCC, it looks lik	froche	-	10/27/1998
22	Double D, on June 7 you stated my pick of WAG was a classic example of a breako	rakitup	-	8/25/1998
21	was just checking an old list of stocks, traded ESON twice before but haven'	coaster	-	6/9/1998
20	Take a look at QWST.. iqc.com Base isn't that significant, but I like the	DD™	-	6/9/1998
19	Virgil, Summit Technology might be worth a look. It traded as high as 37 in 1	rakitup	-	6/9/1998
18	Re CDG, it's selling for 10 times earnings and is $44.00 or so off its re	rakitup	-	6/9/1998
17	DL: I also like CDG. Do you have an entry point for CDG. Looks like support	DD™	-	6/9/1998
16	Thanks. I'll post some more breakouts later today. On your gold and ene	rakitup	-	6/9/1998
15	DL: The WAG chart is a classic example.. iqc.com The problem we have now day	DD™	-	6/7/1998
14	If you would like a good example of a firm breaking out of a trading range (b	rakitup	-	6/7/1998
13	check out summit technology (beam). nice base forming and company is just beco	virgil vancleave	-	6/7/1998
12	Kel, stock strikes me as a dog. ESON loss this year is over 50% of its market	rakitup	-	6/7/1998
11	Yes I think the bad news is factored in, my approch on this one is to wait, and	coaster	-	6/7/1998
10	Interesting chart.. iqc.com Stochastics, RSI and the big Mo are looing up!!	DD™	-	6/7/1998

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