Page 241 - How to Make Money in Stocks Trilogy

How to Read Charts Like a Pro and Improve Your Selection and Timing 123

Jack Eckerd Price
50
Weekly Chart 40
34
Buy
Buy pointu y pointtpointo 30
26
A A A C C 22
19
16
D D 14
12
B B 10
8
7
V Volume upolumee upo me upppup 6
Volume © 2009 Investor’s Business Daily, Inc.
7,200
3,200
1,400
600
200
Mar 1966 Jun 1966 Sep 1966 Dec 1966 Mar 1967 Jun 1967 Sep 1967
certain constellations of stars the “Big Dipper” and the “Little Dipper.”) Jack
Eckerd in April 1967 was an example of the saucer-with-handle base.

Recognizing a “Double-Bottom” Price Pattern
A “double-bottom” price pattern looks like the letter “W.” This pattern also
doesn’t occur quite as often as the cup with handle, but it still occurs fre-
quently. It is usually important that the second bottom of the W match the
price level (low) of the first bottom or, as in almost all cases, clearly undercut
it by one or two points, thereby creating a shakeout of weaker investors. Fail-

Middle of “W” ”
p pivot

Depth % Depth%

Base len
Base lengthgt