Page 107 - How to Make Money in Stocks Trilogy
P. 107
50
A WINNING SYSTEM
Volume
80,000
40,000
20,000
Price
2.6
2.2
3.0
4.0
3.4
1.8
16
19
14
10
12
50
34
30
26
40
22
6
5
8
7
on
, ,
higher highs during market correctio
Ascending base: pulled back 3 times
m
each time making higher lows and
each time making higher lows and
d
e
(also 2 pullbacks to the 10-week
week
e
o
3
o
t
(also 2 pullbacks to the 10-
c
2/1
b
r
r
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moving average line)
)
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h
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s
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S&P 500
m
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(
e
4/3
C
C
Market correction
ven at this extended point
even at this extended point
B
B
Add: 3 weeks tight closes
s
Add: 3 weeks tight closes
t
i i
p
Buy
o
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u
A
week cup-
week cup-
A
A
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r
th-handle
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13-we
we
13-w
13-w
Buy
Buy
with
wit
wit
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w
A
A
Jun 1967 Sep 1969 Jun 1969 Mar 1969 Dec 1968 Sep 1968 Jun 1968 Mar 1968 Dec 1967 Sep 1967 Mar 1967 © 2009 Investor’s Business Daily, Inc. Redman Industries increased 683% in 49 weeks.
e increase
end
Leading producer of mobile l e n homes and aluminum products. homes and aluminum products homes and aluminum products d m s Prior uptrend pt p p P io to base has big volume increase volume v v Dec 1966 Sep 1966
Mar 1966 Jun 1966 Dec 1965
Redman Industries–1968 Weekly Chart Sep 1965 Jun 1965
Price = 20*eps 2.50 2.25 2.00 1.80 1.60 1.50 1.40 1.30 1.20 1.10 1.00 0.90 0.80 0.75 0.70 0.65 0.60 0.55 0.50 0.45 0.40 0.35 0.30 0.25 0.23 0.20 0.18 0.16 0.15 0.14 0.13 0.12 0.11 0.09 0.09 Mar 1965

