Basing refers to a period where the price of a security moves within a relatively tight range for an extended time, indicating a potential equilibrium between buyers and sellers.
During this phase, the security neither makes significant upward nor downward moves. The basing pattern can be seen on a price chart as a horizontal or slightly sideways trend.
Called basing because the sideways trading resembles a base like a table top or other flat object. And is often the “Foundation” for a future move or breakout.
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