Page 1191 - How to Make Money in Stocks Trilogy

174 HOW TO MAKE MONEY IN STOCKS—GETTING STARTED

How These Telltale Patterns Launched Major Gains
Year Run
Company Started Type of Pattern Subsequent % Gain
Apple 2004 Cup-with-Handle 1,528% in 199 weeks
Intuitive Surgical 2004 Cup-with-Handle 1,826% in 180 weeks
CME Group 2005 Double Bottom 224% in 113 weeks
Deckers Outdoor 2007 Flat Base 173% in 46 weeks
Baidu 2009 Cup-with-Handle 401% in 93 weeks
Chipotle Mexican Grill 2010 Cup-with-Handle 186% in 84 weeks
Lululemon Athletica 2010 Double Bottom 196% in 44 weeks
Lumber Liquidators 2012 Cup-with-Handle 167% in 48 weeks
Regeneron Pharmaceutical 2012 Cup 136% in 45 weeks
3D Systems 2012 Cup 178% in 40 weeks

We’ll talk first about the 3 main patterns that launch the big gains of vir-
tually all big winners: Cup-with-handle, double bottom and flat base.
Once we see how to spot the basics, we’ll also take a look at some additional
clues you want to keep an eye on in the “Go Beyond Just the Shapes” sec-
tion of this chapter.
Then we’ll go over 2 alternative buying opportunities that can deliver
some nice gains: 3-weeks tight and a pullback to the 50-day or 10-week
moving average line.
There are other patterns and price actions to look for, but these are by far
the most common and, frankly, the most profitable. So as you’re getting
started, keep it simple and just focus on these.
As we go through these patterns, keep in mind what we just discussed
about the “story” that price and volume and support and resistance reveal.
That provides the backstory for what’s going on in these chart patterns and
why it’s important.