Rally Base Rally is the acronym for Rally Base Rally. As a matter of fact, this is always seen in a bullish market. The price rises (rally), forms a base, and then breaks away from it (rally.) The price then drops to the base level before rising again.
We can clearly see how to determine where we can find an RBR area in the image above. On an indecision candle, I always make the base. If I do not see it on the time frame I am on right now; I switch to a higher or lower time frame where we can usually find it.
Then we return to the line chart to draw a nice line to locate the base’s strongest point. This is the point where it usually rejects and rises again.
We can clearly see how you could trade the RBR in this image. But keep in mind the fundamentals of supply and demand. (Solid foundation! Weak Foundation, etc.)
(In-Depth Explanation in the Video at the end of this Module).