Page 1223 - How to Make Money in Stocks Trilogy

Don’t Invest Blindly: Use Charts to See the Best Time to Buy and Sell 205

See a Pattern Here?

Now it’s time to put what you’ve learned to the test!
Here’s how to do it:
1. Go through the examples below and see if you can spot a pattern within
each chart. If you do, can you name the type of base and see the ideal
buy point?

2. Once you spot the pattern, look for the “clues” we discussed in “Go
Beyond Just the Shapes.” Do you see any? What do they tell you about
the stock and chart pattern? Is the relative strength line in or near new
high territory?
3. See how you did by checking the markups I’ve included for the same
chart on a different page.

The More You Practice, The More You Profit
Don’t expect to learn all of this in one sitting! Take chart-reading one step at
a time, and you’ll see it all come together very soon.
Here’s what I suggest: Before and/or after you take this quiz, watch
the videos I included at the end of each chart pattern description and do
the Simple Weekend Routine. That will help you improve your own chart-reading
skills—and see where to find stocks forming these 3 telltale patterns right now.

Don’t Forget to Take Advantage of Free Investor Training
Have you done the “Must-Do” steps I mentioned in the Introduction?
• Check out the local IBD Meetup group near you.
• Sign up for online IBD Product Training.
Both are free—and both will help you improve your chart-reading skills and get
answers to any questions you may have. You can take both steps right now at
www.investors.com/GettingStartedBook.