Help me read a chart

I’m new, still learning, know the basics, but still a dummy. So ‘splain this to me..

the below chart is from the O’Neill book, HTMMIS. ITS SHOWN AS AN EXAMPLE OF A DOUBLE BASE. THE TWO BASES ARE MARKED. They don’t look like bases to me. What am I missing.

 

Think of a base simply as a pre-move consolidation. It can have different shapes such as flat, a flag, a triangle, cup and handle etc. The concept is the same. A base can form at a major low or high as a head and shoulders formation or the inverse at a low. In all examples it is storing energy and matching buyers and sellers until one takes over.

 

Thanks. I always thought of a base as a more or less imperfect flat line, preferably a tight one, that lasts at least a few weeks. Although I realized after I posted that this is a weekly time frame so it was only two candles (meaning lines it’s not a candle chart) but that represented two weeks.

 

Not sure if this way of looking at it will help or not, but you can see it had a clearly defined up move, clearly defined down move and than another clearly defined up move. So, in that sense it can be an important area / low, despite not necessarily basing out clearly visually across multiple bars.

 

Which book?

 

Yes helps a lot thank you

 

How To Make Money in Stocks.

 

Note that starting the learning process from a larger timesframes - 1 month / 1 week,
already places you at least few steps ahead from those begginers, who focuses on nano seconds & etc., so, good for you.

Tho, no book, nor advice, will be equal to your own experience, that will come through practice. Use demos for that.

 

simply use a straight ruler.
buy when the lows are getting higher (see the green arrow).


notice that I crossed out the words 'BUY POINT'.
buy when it is low, not when it is so high.
Professional writers like to buy when things break record high.

after you read a book, and if you find it doesn't make sense,
go burn the book.

 

Yeah I have no interest in day trading, I’ve got other things I like to do, golf , Guitar, so I don’t want to be tied to a screen all day.

I thought about maybe paper trading for a while first, I can do that on the TD Ameritrade trading platform. Not sure how realistic it will be though, since it’s not real money my mindset might be different, negating the benefit.