Basing and Breakout formation

Basing : Its accumulation phase where smart money comes in, it acts as a base.
Here price may follow the previous trend or shows reversal
Always take partial position, don't get trap by infusing entire position.
Volume activity remains low and you may see some heavy buying at support.
Psychology : participants are not ready to participate actively, it lacks enthusiasm.

Breakout phase :
Here, It may break the support or resistance The bigger the base, the stronger the rally can be.
If it breaks resistance add up your position and if it breaks support cut out your position.
Psychology : Here you will see the moment in price activity with higher spikes in volume.
Here they get the direction.