Rally Base Drop is the acronym for Rally Base Drop. The price rises (Rally), and then settles into a base, and then falls (Drop) from that base. Then it returns to the base and descends further.
We can clearly see how to determine where we can find an RBD area in the image above. On an indecision candle, we always make the base. If we do not see it on the time frame we are on right now; we switch to a higher or lower time frame where It is more likely to be found. 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 to trade the RBD on this image. But keep in mind the fundamentals of supply and demand. (Do you have a solid foundation? Weak Foundation, etc.)(In-Depth Explanation in the Video at the end of this Module).