Page 178 - How to Make Money in Stocks Trilogy

America’s Greatest Stock-Picking Secrets 85

Price 60 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 Volume 13,000,000 7,000,000 4,000,000 2,000,000 © 2009 Investor’s Business Daily, Inc.

Jun 1996

Mar 1996

2/1 Dec 1995
S&P 500 b u e k k w Sep 1995
Volume shakeout, but k s m price closes up over u s l c 40% from low of week o w m f 2/1 Jun 1995

h e e w y e a p l ic % Volume up p p p p p e u V Mar 1995
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n o First 2 times base is faulty, First 2 times base is faulty s s b by 3rd time it has tightened g i a t up and formed properly with p p e a shakeout and handle area a shakeout and handle area n h n rather than wedging up g g w Buy u week cup- 11-week cup- u k w e with-hand
Market correction ke rs y s t 11 Wedging t g n d v d Sep 1994

dle o o o n W Stock was declining bu w price closes unchanged c with increased volume with increased volume n and no further decline o Jun 1994

e. y c y o e or or a a Do Not Buy! Chartistoo Do Not Buy! Chart is too C wide and loose and hand s wedges up along lows wedges up along lows o Mar 1994 Dec 1993 America Online increased 570% in 75 weeks.
Innovators drive each new stock market cycle c h s Their new products, services, technology and t p inventions are bought by consumers who are nventions are bought by consumers who are h the true boss in a capitalist system as they s p o freely choose to buy the products they want o freely cho

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Dec 1992 Mar 1993 Sep 1992
America Online–1994 Weekly Chart IPO IPO O O * Jun 1992 Mar 1992

Price = 20*eps 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 0.20 0.18 0.16 0.15 0.14 0.13 0.12 0.11