Base Breakouts and Chart Patterns

A base is a period of consolidation — price trading in a tight range for an extended period. In Basejump, a base is defined as 15 or more bars where the price range is narrow relative to the average.

Why do bases matter? Because consolidation stores energy. Buyers and sellers reach equilibrium, volume often declines, and the stock "coils." When it finally breaks out of the range — especially on above-average volume — the resulting move tends to be powerful and sustained.

Basejump measures two key metrics for base breakouts: - Base length (in bars): longer bases = more stored energy - Volume expansion: breakout bar volume divided by average base volume. A 2x expansion means the breakout bar had twice the volume of the average consolidation bar — strong confirmation.

The Setup Scorecard shows detected breakouts with their base length and volume expansion ratio.

Chart patterns provide structural context:

Bull Flag — a sharp advance (the "pole") followed by a shallow pullback on declining volume (the "flag"). The flag is a pause, not a reversal. When price breaks above the flag, it typically continues in the direction of the pole.

Bear Flag — the inverse. A sharp decline followed by a weak bounce on low volume.

Uptrend Structure (Higher Highs and Higher Lows) — each swing high exceeds the previous one, and each pullback holds above the previous low. This is the textbook definition of an uptrend.

Downtrend Structure (Lower Highs and Lower Lows) — the inverse pattern confirming a downtrend.

In Basejump, detected patterns appear in the Setup Scorecard with a confidence percentage. Pattern detection feeds into the conviction voting system as the fifth voter alongside EMA, RSI, MACD, and VPA.