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How to Read Charts Like a Pro and Improve Your Selection and Timing 135



                     J D S Uniphase                         Price
                                                            160
                                                            140
                     Weekly Chart                           120
                                                            100
                                                            80
                                                            70
                                                            60
                                                            50
                             Buy point
                             Buy pointn
                                                            40
                                          With this 12th model, are this 12th model, arel, arth m  34
                                          With
                                          With
                                          you beginning to see any beginning to see anye anyng tonou b
                                          you               30
                                          common            26
                                          common factors in these factors in thesehesetorsomm
                                          examples?p sxam   22
                                                            19
                                                            16
                                   V Volumeolumeu  e e e    14
                                   up
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                               2/1      2/1  2/1
                                                            Volume © 2009 Investor’s Business Daily, Inc.
                                                         120,000,000
                                                          70,000,000
                                                          40,000,000
                                                          20,000,000
                        Jun 1999  Sep 1999  Dec 1999  Mar 2000  Jun 2000  Sep 2000
                                                            Price
                     Qualcomm                               200
                                     Climax top: stock doublesbles: stoxm
                                     Climax top: stock doubles  175
                                     in 3 weeks; classic sell signn 3 weeks; classic sell signg;; clae3
                                     in 3 weeks; classic sell sign
                     Weekly Chart    in 3 weeks; classic sell signl sigc  150
                                           Buy ypppointtp   130
                                           Buy pointu
                                                            114
                                                      5
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                       N N Now you have 13 models toyou have 13 models tomodou haw  5 weeks of weeks ofw  100
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                       use for the next high tight flagtthe  t x t hi hti htflghi hti htfltgh ti  tightg g g tight closescloses  88
                       use for the next high tight flagffe
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                                                            66
                                                High tighg
                                                Hi H Hi  tightgt tight t t
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                                                            50
                                                            44
                                               C
                                  Buy pointyppointy poin  B B  38
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                     If you missed the first you missed the firstftmissy  A A A  33
                                                            29
                                          Ascendingns
                     high       n n an    Ascendiding g g base  25
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                     high tight flag there’s antight flag there sre’s aght fg
                     ascending base ahead. base aheadhead.edingc
                     ascendinggg               K K Key: selling lliey: sellingnse  22
                     But                       subsidesbidiu  19
                     But you can’t pay $57you can t pay $57pu cant
                                        gh tighth tighh
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                     when you could have you could havealyou ce yy  Highigh  t t  16
                     when
                     paid  $  ,,  yy  2/1 lagagflaflffla g  4/1  14
                     p paid $29, can you?$29 can you??y29, c
                                                           Volume  © 2009 Investor’s Business Daily, Inc.
                                                          80,000,000
                                                          40,000,000
                                                          20,000,000
                         Dec 1998  Mar 1999  Jun 1999  Sep 1999  Dec 1999  Mar 2000
                                                            Price
                     T A S E R Intl.                        128
                                                            108
                     Weekly Chart                           92
                                                            78
                                                            66
                                                            56
                                                            47
                                            Buy pointtpypp  40
                                            B B
                                            Buy pointi tt
                                                            34
                       Since you have 14 models, you have 14 modelsloe 14nce y
                       Since            Buy pointt          29
                                        Buy pointtyp
                                        Buy point
                                        Buy p
                       can you now locate one or you now locate one oronocatoan yo
                       can                                  24
                       two                      A Another highhigher hin  h h  20
                       two or maybe more precedentsor maybe more precedentsedentpmorawo or
                                                Another
                       that                     tight  g    17
                       that look like these two examples? look like these two examples?sxampwheseiat loo
                                                 g tight flagflaga
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                       What’s that?s that?a  Y Y Y Y Y Y You never use chaou never use chause chen  r r ??ts?ts?t  14
                                                    on
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                                                            8
                                                            7
                                         V V V lolume dumeeoluololu  ddrr up is keyuppy-uy-uy up p is keyykis keyk  6
                                         clue this extethise
                                         cl c cl clue  extendedxtendedxtendxex exte  B Big  5
                                                     Big volume
                                                     Big volumeevolumev
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                                             probably
                                         stock  probably okokobo  3/1  4.4
                                         stock is pis psc
                                         Volume upolume upel  Volume  © 2009 Investor’s Business Daily, Inc.
                                                          25,000,000
                                                          12,000,000
                                                           6,000,000
                                                           3,000,000
                       Dec 2002  Mar 2003  Jun 2003  Sep 2003  Dec 2003  Mar 2004  Jun 2004
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