Page 141 - How to Make Money in Stocks Trilogy
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                                                              140,000
                                                            300,000
                                                                60,000
                                                                  20,000
                                                          Volume
          Price
              100
            120
                                                       4.0
                   70
                 80
                       50
                     60
                                                7
                                                  6
                                                    5
                                                                     Jun 1983
           Sell: climax top off 3rd stage base
           Sell: climax top off 3rd stage base
           e
                                                        Volume up
                                                        p
                                                        Volume up
                                                                     Mar 1983
                                                        m
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                                                        o
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                  ,
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                                                                     Dec 1982
                     Buy
                p much
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                     Bu
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                At end of 8 weeks, now up muc
                  w
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                   ll weeks
                   k
                p
                                                      p
                                                      p
                                                      Volume up
                                                      p
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                  t
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                  Note: up 20% in 1st
                                                                     Sep 1982
                   l w
                  Note: up 20% in 1
                w
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                   s  hold 8 full
                   hold 8 ful l
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                   ld8fu
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                   must hold 8
                                                      V
                  2
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                                                                     Jun 1982
                w
                   h
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                   h
                  Note:
                  e
                  e
                d
                                                                     Mar 1982
                     B
                     B
                A
                                                                         Digital Switch increased 843% in 46 weeks.
                                                                     Dec 1981
                S&P 500
                     A
                     A
                                                     A
                                                                     Sep 1981
                                                                     Jun 1981
                                                                     Mar 1981
                         Note: at point B the S&P 500 (top thin  p  t  40 line) makes a new low relative to point A.  t A  i  t  ti  l  r  l  a However, Digital Switch stock at point B  Digital Switch stock at point B  p  h  34  e  ase  s 8-week bas  as  e  8 does not make a new low like the S&P 500  0  e  o  k  30
                                                                     Dec 1980
                                                                     Sep 1980
                                  see this clue.
                                  see this clue
                          k
                            r
                            r
                            However
                              b
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                                 s
                               s
                              e
                             e
                          e
                         t
                                                                     Mar 1980 Jun 1980
                              d
                          li
                                                                     Dec 1979 Sep 1979
           Digital Switch–1982  Weekly Chart                         Jun 1979 Mar 1979
          Price =  20*eps   5.00    4.50    4.00    3.50    3.00    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    0.19
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