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High Base Breakout Trading Pattern
Definition:
A High Base Breakout is when a price action within the context of an uptrend pauses at the peak of an up leg and consolidates in a sideways fashion in a narrow range.
Background:
The power of a High Base Breakout can be greater after a powerful upside move due to the possible increase of underlying support.
High Base Breakouts can be stronger when the previous swing/pivot high is below a high base due to the possible lack of immediate overhead resistance.
Practical Use:
Technical analysts often seek out High Base Breakout patterns for their ability to signal a shift from selling (and/or buying uncertainty) to buying pressure.
