Ascending Base Pattern  






An ascending base typically starts forming after a stock has already staged a prior breakout and gained at least 20% -- so it's usually not a first-stage pattern. 


It consists of a series of three pullbacks, each ranging from about 10% to 20% from the most recent high to low. Each of the pullbacks must mark a higher high and a higher low — thus, the ascending base.


Because the pattern is created by three distinct pullbacks, it can take longer to form than most other bases, roughly 9 to 16 weeks.

To get the buy point in an ascending base, add 10 cents to the high of the third pullback. Don't buy if it's extended more than 5% past the proper entry.