Page 452 - How to Make Money in Stocks Trilogy
P. 452

322  INVESTING LIKE A PROFESSIONAL


          Base-on-Base Pattern


                              Buy pointnu
          Prime Computer      Buy point  Price  Surgical Care   B Bu uy poin ntt nt nt  Price
                                       27
                                                                Buu
                                                                         11
                                                                 yppoinn
                                                                uy
          Weekly Chart                 26 25  Weekly Chart
                                       24                                10
                                       23
                                       22
                 P P P P Priori        21                                9
                 uptrenddn d d
                 u u
                                       20
                                       19
                                                                 Flat basb  e
                                       18                                8
                                       17
                                       16
                                       15                      Shakeout onoa  n  7
                                       14                      huge volumeme  e
                                       13             Basee e        V Volume e
                                                                     d dry up
                                       12 © 2009 Investor’s Business Daily, Inc.  6 © 2009 Investor’s Business Daily, Inc.
                                      Volume          5/4               Volume
                                       40,000                           140,000
                                       30,000                           80,000
                                       20,000                           40,000
                                       10,000
             Jun 1977  Sep 1977  Dec 1977  Mar 1978  Jun 1988  Sep 1988  Dec 1988  Mar 1989
          Prime Computer 1564% increase in 169 weeks  Surgical Care Affiliates 1632% increase
                                                       in 150 weeks
                                                                Buy point
          Optical Coating     Buy point  Price  Network Appliance  Buy pointpp  Price
                              Buy pointtu
                                                                         82
                                       22
          Weekly Chart                 21   Weekly Chart                 78 74
                                       20                                70
                                                                         66
                                       19
                                                                         62
                                       18                                58
                                                                         56
                                       17                                54
                                                                   S Second  e e  52 50
                                                                   Second basebasec
                                                                   ss
                                       16                          sits on top oits  t op  48 46
                                                                   of
                                                                   of firstfirsti
                                       15                                44 42
                                       14                                40 38
                                                             First basebaaseas
                                                             F
                                       13                    First  e e  36
                            Big volumug  e  © 2009 Investor’s Business Daily, Inc.  Big volumll  me  34 © 2009 Investor’s Business Daily, Inc.
                                                       Bi B B B
                            clu
                             uess
                            cluu ues   12              cluesl c c        32
                                       Volume  2/1                      Volume
                                      320,000                           8,000,000
                                      160,000                           5,000,000
                                       80,000                           3,000,000
                                       40,000
                                       20,000                           1,800,000
            Mar 1998  Jun 1998  Sep 1998  Dec 1998  Mar 1999  Jun 1999  Sep 1999  Dec 1999
          Optical Coating Labs 1957% increase in 58 weeks  Network Appliance 517% increase in 18 weeks
   447   448   449   450   451   452   453   454   455   456   457