Page 243 - How to Make Money in Stocks Trilogy

How to Read Charts Like a Pro and Improve Your Selection and Timing 125

Price Co. Price
60
Weekly Chart
50
40
34
30
Strong price iig
St S
Buy
action
a
action ononn Buy pointpointy t t 26
A
huge volumeg volu 22
h
C E E E
19
16
F F
14
B 12
D D 10
Relative Strength Line
Second leg down at D at new high before price 8
undercuts the first at B makes new high
7
6
V Volume upolume upme up
V Volume upolume upmo p p 5
3/1
Volume
160,000
80,000 © 2009 Investor’s Business Daily, Inc.
40,000
Jun 1981 Sep 1981 Dec 1981 Mar 1982 Jun 1982 Sep 1982 Dec 1982 Mar 1983
Cisco Systems Price
100
Weekly Chart 80
70
60
50
40
34
30
26
Buy
Buyyy
Tight pricepriceet
T Tight e e pointn 22
point
a
action
action 19
E
A A 16
C 14
12
F F F
10
B S Second leg downeg d
D D D u undercuts the firsthe firss the st stt 8
undercuts
7
2/1
Volume
1,600,000 © 2009 Investor’s Business Daily, Inc.
800,000
400,000
200,000
Jun 1990 Sep 1990 Dec 1990 Mar 1991 Jun 1991 Sep 1991 Dec 1991 Mar 1992