Page 197 - How to Make Money in Stocks Trilogy
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America’s Greatest Stock-Picking Secrets  95
                                                             1,340,000
                                                            2,500,000
                                                                400,000
                                                               740,000
                                                                  220,000
                                                          Volume
           Price
             100
                                                       3.6
                                                     4.5
                                        12
                                      14
                                    16
                                          10
                                  19
                                22
                            30
                              26
                      50
                         40
                    60
                80
                  70
                           34
                                               7
                                             8
                                                 6
                                         closes in upper half
                                         f
                                           above 10-week line
                                          of price spread and
                                          of price spread and
                                        to 23 in 2 weeks
                                       Big shakeout: 35
                                       Big shakeout: 35
                                        to 23 in 2 weeks
                                       u
                                        w
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                                           1
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                                        3
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                                                       Very important
                                          of
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                                                        volume clue
              S&P 500
                                                       r
                                                        u
                     Market correction
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                                                       V
                     o
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                     e
                           s
                           3 tight closes
                           3 tight closes
                           s
                           s
                     a
                                Buy
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                                                Big cup-with-handle
                                                Big cup-with-handle
                                s
                                4 tight t closes
                                s
                                s
                                ses
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                                4 tight clos
                                o
                                                -
                                                i
                                g
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                                                g
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                                                B
                                                                     Jun 1999 Sep 2001 Jun 2001 Mar 2001 Dec 2000 Sep 2000 Jun 2000 Mar 2000 Dec 1999 Sep 1999  © 2009 Investor’s Business Daily, Inc.  Taro Pharmaceuticals increased 382% in 39 weeks.
                                                                     Mar 1999
                                                                     Dec 1998
                                                                     Sep 1998
                                                                     Jun 1998 Mar 1998
           Taro Pharmaceutical–2000  Weekly Chart                    Dec 1997 Sep 1997 Jun 1997
          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    0.17
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