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How to Read Charts Like a Pro and Improve Your Selection and Timing 133



                     Certain-teed                           Price
                                                            60
                     Weekly Chart                           50
                                                            40
                                            Buy pointttipoint
                                            B
                                            Buy pointt
                                                            34
                                                            30
                               Big eagg  r rnings estimate due g eg  mate  26
                               to new shell homes productes prhw she  t
                               ( (looww-cost housing)-cost housing)gusingost
                               (lo     g) g                 22
                                                  gh tighth tigight
                                                 H H High tigh  19
                                                 fla fl fla g ag
                                                            16
                                                            14
                                                            12
                                              V V V V umeumemoluolu  B Big volume g volum  10
                                              subub bsidesd  o on new highew h
                                                            8
                                                           Volume  © 2009 Investor’s Business Daily, Inc.
                                                           130,000
                                                            80,000
                                                            50,000
                                                            30,000
                                                            18,000
                      Dec 1959  Mar 1960  Jun 1960  Sep 1960  Dec 1960  Mar 1961  Jun 1961
                                                            Price
                     Syntex       Syntex now has 6 prior models to usnow has 6 prior models too usor mw haxy  se se s us  190
                                  Syntex
                                  as
                                  as a guide and precedent. Back in a guide and precedent. Back inncdent.e andg  160
                     Weekly Chart  1963,    r rtain-teed as thetain teed as thes thedtain  e e e  140
                                  1963, I only used CeI only used CeCly u9
                                  precedent when I bought Syntextghtbwhede
                                  precedent when I bought Syntex  120
                                                            100
                                                            80
                                                            70
                                                            60
                                          ypoint
                                        Buy pointi  t tt    50
                                        B B
                                                            40
                                                            34
                                                            30
                        8 8 weeks prior to high tight flag,kks pw  i r  t hi hti htflahhigh  26
                        St  wasa up overep  100% in onlin%  ly lyl
                                 100%
                        Syntexxy
                                           High tighttightg
                                           H H Hi
                        8 8 weeks on increasing volumeweeks on increasing volumemoasingnks ow  High  t t  22
                                           flagg g g        19
                                           flag
                                                  V V V V V Volume upolume upme u p  16
                                                     3/1    14
                                                           Volume  © 2009 Investor’s Business Daily, Inc.
                                                           160,000
                                                            80,000
                                                            40,000
                                                            20,000
                        Sep 1962  Dec 1962  Mar 1963  Jun 1963  Sep 1963  Dec 1963  Mar 1964
                                                            Price
                     Rollins        Here                    60
                                    Here is an 8th example of is an 8th example ofple oxan 8th
                                    H
                                    a a high tight flag. I wasn’t gh  gght fl  g  wasn’t  50
                     Weekly Chart   p paying attention, and I d,ttentn
                                    completely missedmissedeely mp
                                    c completely  R R Rollins.ollinsn  .  40
                                    Y Y Y Y
                                    Y Y You snooze, you lose.ou snoozeoze, ys  ,y ,yyou loses  34
                                                            30
                                                            26
                                                            22
                                    B Buy pointt
                                    Buy pointtointiou
                                                            19
                                                            16
                                                            14
                                                            12
                              S Stock up 143%%up 1c  Highgh
                                        Hig
                                        H H
                                         gh tighth tightht hththht
                              i
                              in 7 weekseeks7n 7 weeks7 eeks7  k  10
                                        flaglag g
                                                            8
                                                            7
                                                            6
                                         Volume ddolum  ry-up,u
                                         selling
                                         sellingelling g g subsidessubsidesdu  s s  5
                                                     3/1
                                                           Volume  © 2009 Investor’s Business Daily, Inc.
                                Increasingasinn Increasing g g  80,000
                                volumemo volume             50,000
                                                            30,000
                                                            18,000
                        Dec 1963  Mar 1964  Jun 1964  Sep 1964  Dec 1964  Mar 1965  Jun 1965
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