Page 108 - How to Make Money in Stocks Trilogy

50 A WINNING SYSTEM

Price 50 40 34 30 26 22 19 16 14 12 10 8 7 6 5 4.0 3.4 3.0 2.6 2.2 1.8 Volume 80,000 40,000 20,000 © 2009 Investor’s Business Daily, Inc.
Sep 1969

, , m 3 d on e o week e Jun 1969
Ascending base: pulled back 3 times c b p a g each time making higher lows and each time making higher lows and o r g g a higher highs during market correctio t r d h (also 2 pullbacks to the 10-week (also 2 pullbacks to the 10- t a l moving average line)

S&P 500 c A m h e h h h s ( g v m Sep 1968 Jun 1968

C C B B 4/3
Market correction r c Add: 3 weeks tight closes Add: 3 weeks tight closes o t w even at this extended point ven at this extended point p d d h h Buy u Buy Buy A A A A A A week cup- week cup- u 13-we we 13-w 13-w th-handle l with wit wit Mar 1968 Dec 1967
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A
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Jun 1967 Sep 1967 Mar 1967 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