The base with no bottom

What the Lesson Covers

1. 0:00Some declines end without a bottom. They just slow down, flatten out, and quietly turn around.
2. 0:06The shape. Down bars shrinking, weeks of flat nothing with no single low, then a recovery that takes about as long as the decline did. Over months, a saucer.
3. 0:17Why it forms. Sellers finishing and buyers arriving, both slowly. The dead flat base is the gap between the two, which is why it takes so long.
4. 0:27The levels that matter. The rim, the base as a zone rather than a price, the depth between them, and where the quietest volume sits.
5. 0:37Where it completes. It completes on a close above the rim. Below the base it is over, and the base is a stretch of chart rather than a single number.
6. 0:48How often it follows through. Sixty-three to sixty-nine, one of the higher bands here, because months of behavior are much harder to fake than a few bars.
7. 0:57The same shape failing. The roll-over. Price drifts back up to the rim on no volume at all, stalls there, and then goes back down through the base.
8. 1:08The tells. Flat volume through the recovery, a rebound much faster than the decline, or weeks of stalling at the rim.
9. 1:18Switch to weekly bars. Saucers are invisible at any closer range.