Technical Analysis Setups – The Spike Base

I got this name from http://www.nobrainertrades.com – a great website I can highly recommend btw….

I’ve used this forever, I typically call it a “flag base”, but I believe it’s many names for the same thing – the first “stalling point” of an impulse move.

The first time price retraces back here… it’s good to take a trade in the direction of that impulse move, and it can typically be taken to the high of the move, if not even for a whole new high (or low, in a bearish impulse move)

I’m not going to go into why this works at the moment…. that’s more market microstructure stuff. Just for pure technical analysis high probability price patterns and setups, this one is a good one to know, and to start to comb through charts and see if you can recognize it yourself….