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316  INVESTING LIKE A PROFESSIONAL



          Reebok              Buy point  Price  Compaq                   Price
                                                                         19
                              Buy pointtppointp
                              Buy
                                       31
          Weekly Chart                 30   Weekly Chart        Buy y y pointtpointn  18
                                                                Buyy
                                                                 y y y point
                                       29
                                       28                                17
                                       27     P Prior
                                               p
                                               p ptrend
                                              up ptrend                  16
                                       26
                                       25                                15
                                       24
                     IPOP O            23                                14
                     *                                              V V lolumeu
                                       22                           dry-up onu back  n  13
                                                                    pullbb
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                                   Shakeout  21
                                   S S Shakeout
                                   c closes in                           12
                         Strong up weeup wweewg  eks  u upper half pper half  20 © 2009 Investor’s Business Daily, Inc.  © 2009 Investor’s Business Daily, Inc.
                               eks
                         S
                         Strong
                         on big volumebigg
                         o on  g g volummem  19                          11
                                   of rangegf of range
                                                                        Volume
                                      Volume                           1,700,000
                                      300,000                          1,000,000
                                      140,000                           580,000
                                       60,000                           340,000
                                       20,000                           200,000
               Jun 1985  Sep 1985  Dec 1985  Mar 1986  Mar 1986  Jun 1986  Sep 1986  Dec 1986
              Reebok 246% increase in 18 weeks  Compaq 352% increase in 46 weeks
          Macromedia          Buu uy pointyp  Price  Amazon.com  Buy pointpp  Price
                                                                Buy point
                                                                B
                               uy pointi
                                       24
                                                                         32
          Weekly Chart                 23 22                             31
                                       21   Weekly Chart                 30 29
                                       20
                                       19                                28
                                       18                                27
                                       17                                26
                                       16                                25
                                  Handlea  15                            24
                                  driffts down n  14                     23
                                  along lowso ong lowsg  13              22
                                       12                   IPO O O      21
                                                            IPO
                                       11                   *       RS line a at
                                       10                           new highhi gh  19
                               Big
                               Big  V Volumeolume  9                 Volume  18
                               volumu me  dry-up                     d dry-up  17
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                                                        on uuu
                                                           eek
                                                           eek
                                                         up
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                                       7                on  up wewee eekk  15
                                      Volume                            Volume
                                      920,000                          1,440,000
                                      560,000                           780,000
                                      340,000                           420,000
                                      200,000                           220,000
           Mar 1994  Jun 1994  Sep 1994  Dec 1994  Dec 1996  Mar 1997  Jun 1997  Sep 1997
             Macromedia 486% increase in 49 weeks  Amazon.com 3805% increase in 70 weeks
          Comverse Tech       B B B uy po ointtit  Price  Verisign  St Stt rong ppp rice actioactioe actioa  on  Price
                                                              rice
                                                                         52
                                                                 onn
                                                            rong
                                       60
                               ypointo
                               yp
                                                                m
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                                                           n huge u
                                                           onn
                                                                   Buy pypp
          Weekly Chart                 58 56  Weekly Chart  on nh  g volumvoluumge  me  Buy  pointp p point t t  49 47
                                       54                                45
                                       52                                43
                                                                         41
                                       49                                39
                                       47                                37
                                       45                                35
                                       43                                33
                                       41                                31
                                       39                                29
                                       38                                28
                                       37                                27
                                              I
                                              IPO
                                       36     IPO O O                    26
                                       35                                25
                                    V Volumeolume  34 33  * * * * *      24
                                    d d drry-upyup   32                  23 22
                                    in in handlhandl le le 33 31         21
                                       30 © 2009 Investor’s Business Daily, Inc.  © 2009 Investor’s Business Daily, Inc.
                                       29             Shaaa akeoutt ta  ottomo ottom  19
                                                          t at botbo
                                                      Sha
                                                       akeout
                                                      clos
                                                       ses in in
                                      Volume          clo ses  uppeppee r r halfhalf  Volume
                                      1,600,000                        1,140,000
                                      800,000                           640,000
                                      400,000                           360,000
                                      200,000                           200,000
             Mar 1998  Jun 1998  Sep 1998  Dec 1998  Mar 1998  Jun 1998  Sep 1998  Dec 1998
          Comverse Technology 564% increase in 67 weeks  Verisign 2250% increase in 66 weeks
                                                                Buy point
          A R M Holdings       Buy pointt  Price  Veritas Sftwr  Buy pointpp  Price
                               Buy pointypyy
                                       70
                                                                         66
          Weekly Chart                 68 66  Weekly Chart               62
                                       64                                58
                                       62
                                       60           P P P P P P P P Priorrioririor  54 52
                                       58
                                                    uptrendd
                                       56           u u u uptrend d d    49 47
                                       54                                45
                                       52                                43
                                       50                                41
                                       48                                39 37
                                       46                                35
                IP IPP O O O O         44                                33
                                                                    S S S
                                                                    Stro
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                * *                    42         Massive shaas  akeouu ut  S S Stron ng  31
                                                  w
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                                  Stronn
                                  So ng  40 39    mid range rara    pc bigg  e ee  29
                                    ng price gp ceprice
                                  S S S S S S S S S
                                                                    on bb
                                                                    o o
                                                  mid-range
                                    e on big nbig
                                  movee
                                  m m m move eo  38                      27
                            gh
                        4 4 weeweee eks  gh ht ht  v vo oluml olumm me  37 36  volum me  25
                                                                    v v v
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                                                                     me
                                                                    volu
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                        close s onn    35 © 2009 Investor’s Business Daily, Inc.  24 © 2009 Investor’s Business Daily, Inc.
                          so
                        closees
                          volumm
                           mee
                           me
                        light  volum me  34          3/2                 23
                        g light vvv
                                      Volume                            Volume
                                      160,000                          4,000,000
                                      80,000                           1,400,000
                                      40,000                            600,000
                                                                        200,000
                 Jun 1998  Sep 1998  Dec 1998  Mar 1999  Mar 1998  Jun 1998  Sep 1998  Dec 1998  Mar 1999
            ARM Holdings 1385% increase in 57 weeks  Veritas Software 1097% increase in 62 weeks
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