Trade Like Base and Break Trader

**Base and Break** — William O'Neil's undercut & rally base pattern.\n\n**Philosophy:** Most basing strategies require volatility to contract into a tight range with volume drying up. This one doesn't — any ATR-contracting base qualifies, wide or tight, volume elevated or not. That's deliberate: bases like HIMS, BE, and ARM in Sep 2026 compressed on ATR fine but stayed wide-range with volume staying elevated the whole time — the exact combination stricter contraction strategies reject.\n\n**Core Setup:** ATR contracts over a 5-10 bar window. Enter on either the undercut-and-rally (a shakeout below the base low that reclaims it within 3 bars — traps late sellers before the crowd shows up) or the breakout above the base high on volume. Every base gets graded — not gated — on length, MA support, prior advance, and sector strength.\n\n**Best For:** Swing traders who want a basing pattern that doesn't filter out real setups just because the range was wide or volume didn't dry up.\n\n**Source:** William O'Neil - *How to Make Money in Stocks*