Page 42 - How to Make Money in Stocks Trilogy
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America’s Greatest Stock-Picking Secrets  17





          Price  340  300  260  220  190  160  140  120  100  80  70  60  50  40  34  30  26  22  19  16  14  12  Volume  130,000  50,000  16,000  6,000  2,000  © 2009 Investor’s Business Daily, Inc.
                                                                     Dec 1929

                                          x.
                                       .  e  L  g  e  t  x  x  n  e  Sep 1929
              Dow Jones Ind.           Relative Price Strength Line vs.  t  e  S  i  e Dow Jones Industrial average. Dow Jones Industrial average  t  d  s  n Uptrending line means stock is  m  e  g  d outperforming the market index outperforming the market inde  a  e  m  o  3/1  Jun 1929 Mar 1929



                   climax top with  w  o climax to Sell: climax   x  x  m  m  excessive 3/1 split ssive 3/1 split  i  3  v  10-week moving  v  m  e  average line of prices  s  e  o  n  e  t  e  o  e  p  e  u  Dec 1928 Sep 1928



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                                                                     Jun 1928
                                                                     Mar 1928
                                                                     Dec 1927
             d u  r  s.  t  hi  a  e  t 3 weeks tight  Handle drif ftsdown along weekly low prices along weekly low prices  c  p  p  y  y  k  Sep 1927 Du Pont de Nemours increased 1074% in 225 weeks.
           A leader in science and technology across many  g  l  h  d t  i  c  i industries including agriculture, film and automotive. industries including agriculture, film and automotive.  f  r  c Hybridization of seed corn in 1926 by Henry Wallace and  2  o  n moisture-proof cellophane were 2 notable achievemen









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                     Market correction  n  c  4 weeks tight closes  g  s  at moving average line at moving average line  n  3 weeks   e  Buy  Buy tight closes tight closes tight closes  t  - 35-week double bottom-  l  w  handle with-handle  with-  Shakeout but Shakeout but  u  never 8% below  w  %  last buy point
               o
           Du Pont de Nemours–1925  Weekly Chart  n  n Market correction Market correction  o  e  Sell: climax top  o  :  Add  Add  Buy  last buy  9 weeks  k  9  9-week cup-  week cup  e  9  w  in-a -row  w  w  in-a -row  with-handle  up  p  p Volume up  13/10  Dec 1925 Sep 1925 Jun 1925 Mar 1925
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