{"id":3839,"date":"2023-03-17T06:20:19","date_gmt":"2023-03-17T06:20:19","guid":{"rendered":"https:\/\/fisdomdevel.wpengine.com\/glossary\/basing\/"},"modified":"2023-03-17T06:20:19","modified_gmt":"2023-03-17T06:20:19","slug":"basing","status":"publish","type":"post","link":"https:\/\/www.fisdom.com\/glossary\/basing\/","title":{"rendered":"Basing"},"content":{"rendered":"<p>\nBasing is a technical indicator used by traders and occurs when a stock&#8217;s price moves sideways after a continuous period of falling.The stock is said to form a \u2018base\u2019 or flat pattern which indicates very little or no upward or downward movement. It also results in a decline in volatility and it can result in a reversal of the stock price. Stocks form support and resistance levels in the consoldition or basing period which might indicate entry and exit points for traders or large institutions.<\/p>\n<h2>Significance Of Basing<\/h2>\n<p>Basing helps traders figurw out the right entry and exit price levels of stocks. Some key characteristics of basing which help traders are :<br \/>\na) A stock is expected to move upwards after formation of base<br \/>\nb) Basing signifies equal amount of demand and supply for the said stock<br \/>\nc) Consolidation may take some time, even months or years, after which a strong momentum may take it on an upward trajectory<br \/>\nd) Seasoned traders wait for a breakout to happen after basing and buy only when there is a clear trend<br \/>\ne) Waiting for prolonged basing period also lowers risk of trading in the stock<\/p>\n<h2><\/h2>\n<h2><\/h2>\n<h2><\/h2>\n<h2><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>Basing is a technical indicator used by traders and occurs when a stock&#8217;s price moves sideways after a continuous period of falling.The stock is said to form a \u2018base\u2019 or flat pattern which indicates very little or no upward or downward movement. It also results in a decline in volatility and it can result in [&hellip;]<\/p>\n","protected":false},"author":67,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[11],"tags":[],"class_list":["post-3839","post","type-post","status-publish","format-standard","hentry","category-stocks"],"_links":{"self":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/3839","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/comments?post=3839"}],"version-history":[{"count":0,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/3839\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/media?parent=3839"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/categories?post=3839"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/tags?post=3839"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}