Flat Base
Also called: Darvas box, base
A tight, sideways consolidation in a narrow price range after an advance — a quiet base from which a stock can launch its next leg up.
A flat base (or Darvas box) is a horizontal range where price moves between roughly parallel support and resistance for several weeks, usually correcting less than ~15%. The tightness signals that supply and demand are in balance and big sellers have stepped aside.
The breakout above the top of the box is the entry; the longer and tighter the base, the more meaningful the breakout. Volume drying up inside the base and surging on the break is the textbook tell.
On StockSetups
Flat bases / Darvas boxes are part of the StockSetups pattern set; when one breaks, the signal moves into the 'broke out' lane on the free board so even free users can see fresh breakouts from tight bases.
Related terms
See flat base on tonight's board.
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