Page 255 - How to Make Money in Stocks Trilogy

How to Read Charts Like a Pro and Improve Your Selection and Timing 137

Price
Ascend Communications 70
60
Weekly Chart 50
40
34
30
26
B
Buy pointiuy po t t tt t
yp
yp
22
19
16
3 3 weeks closing weeks closingosingse 14
tight
tight on 10-weekon 10 week-weent
B Base-s -o movingv averageerage line e 12
-on-n
basese
base e e 10
P Prior baseor basririo
8
V Volume increaseolume increasecreaseu e e 7
2/1 6
Volume © 2009 Investor’s Business Daily, Inc.
1,600,000
800,000
400,000
200,000
Mar 1994 Jun 1994 Sep 1994 Dec 1994 Mar 1995 Jun 1995 Sep 1995
Oracle Price
100
Weekly Chart 80
70
60
50
40
Buy point
Buy
Buy pointyppointy po 34
30
3
3 3 3 weeks kwee
t t tight closesht l eght c 26
ti
22
19
Base-oo
Baseaasea ono o on-o o o o 16
as as a base
baaase 14
se se
Big
B Bi B Big volumevolumev l on 12
o
on downdowndown weekweeke
b
but closes in upper half ofperes inclose
P Pr or baserbasebriorioio week’s pricesk’k’s p p p i s 10
w
3/2 2/1 8
Volume
Volume upume © 2009 Investor’s Business Daily, Inc.
160,000,000
80,000,000
40,000,000
Dec 1998 Mar 1999 Jun 1999 Sep 1999 Dec 1999 Mar 2000 Jun 2000
Coca-Cola Price
300
Weekly Chart 5 weeks tightweeks tightks tigw t t B Buy pointpoint 260
5
B
closesso 220
closes
190
Buy pointyy
Buy pointn
B
160
Flat baseebaseaa
Flat base
Flat 140
120
Base-on-ase-o
P P P Prior baserior basebo 100
b basea
4 4 4 weeks tightweeks tight tighe t t 80
Base r r r sssmsms c closes 70
Base fofos
closese
just above t abo Breakout weekly volumeweekly volumekly vo 60
j
Breakout weekly volumeekltout we
Breakout
p prior baseior bas
b
should be more than e th be mo 50
prior weekio w k
V Volume dme dry-upu p 40
near lowslows
V V Volume upme u p Volume © 2009 Investor’s Business Daily, Inc.
6,400
2,600
1,000
400
Mar 1934 Jun 1934 Sep 1934 Dec 1934 Mar 1935 Jun 1935 Sep 1935