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The Art of the Flat Base Breakout: A Dan Zanger Playbook

From TradingHabits, the trading encyclopedia · 4 min read · March 1, 2026
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The Power of the Flat Base

The flat base is a effective consolidation pattern that often precedes a major price advance. It is characterized by a tight, horizontal trading range. The longer the base, the more explosive the potential breakout. Dan Zanger loves flat bases because they represent a clear and defined area of support and resistance. When a stock breaks out of a flat base on high volume, it is a clear signal that a new uptrend is underway.

Trading the Flat Base

Zanger's approach to trading the flat base is straightforward. He buys as the stock breaks out above the top of the base, on a surge in volume. His stop-loss is placed just below the breakout point. He will hold the stock as long as it continues to trend higher, and will sell if it breaks down below a key support level.