Quote Originally Posted by mscott View Post
Pascal, The bar count starts at the beginning of a base formation. The beginning of a base is the first down week after a closing high and counts up to but not including the breakout week which is possibly the breakout above a handle formation or a move to a new high in case of no handle. Minimum length of a base is usually 7 weeks however flat bases can be 5. Cup formations can be as much as 65 weeks.

The whole process is to help gauge whether institutions are accumulating or distributing. How the price closes at the end of the week helps tell what they are doing. As such more recent bars on the right side of the base are more important than the left. The method I described makes no such discrimination however it is a subtly that I might bring into a close call.
Hi Mike, I also enjoyed your presentation and I thank you for it. One clarification I'd like to get is on counting the tall bars. Does it mean any bar over average volume (ie, 1% or more above avg.) or do you want to see some height over the average volume say 10% or more?

Best,

Pablo