Couting Base

To count bases, make sure each pattern (except for a flat base) is at least seven weeks long.  Short consolidations don't count.  The stock must rally at least 30% between each base. So a flat base that's up only 15% above a previous base gets counted as part of the first base.    

Resetting the base count is a tricky topic.  As a stock corrects, the low point of its base shouldn't undercut the prior trough.  Like a staircase, each base sits a step higher.  If it does undercut the last base, you reset the base count to zero.