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Home › The Momentum Dictionary › Base / flag
Reading a stock

Base / flag

A rest period after a big move — price goes sideways or pulls back gently while the stock digests its gains. Tight, quiet bases on shrinking volume are healthy; wide, violent ones are not.

More from “Reading a stock”

  • Relative strength (RS)
  • Moving average (10-day, 20-day, 50-day, 200-day)
  • The four stages
  • Breakout
  • Higher low
  • Undercut-and-reclaim
  • Extended
  • ADR% (average daily range)

Recent RTL research on this term

  • We Went to Cash on Friday. Here are the New Leaders & Themes We’re Tracking.Oct 18, 2026
  • AMD Fell 4% at the Open and Closed Up 2%. Is the Chip Flush Over?Oct 14, 2026
  • We're 100% Cash. Monday Is the Test.Oct 17, 2026
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