Before starting their upward trajectory, stocks with significant price increases would generally stair-step higher and create Flat Bases. This activity may occur multiple times during an up trending stock's lifetime and can last from a few days to several weeks, depending on the circumstances. During flat bases, trading ranges are narrow and activity is lower than normal. While it may not always happen, the longer a company sits in a Flat Base, the greater the price increase that may occur when the stock breaks out.

The flat base stock pattern is a common chart formation in technical analysis used to identify potential buying opportunities in the stock market. It occurs when a stock experiences a period of consolidation, with its price moving sideways in a relatively tight trading range. During this phase, the stock's volatility decreases, and it forms a flat, horizontal base. Traders often look for this pattern as it suggests a pause in the market before a potential upward breakout. The flat base is a bullish signal, indicating that the stock may be gathering strength for a new upward trend after the consolidation period.