Page 48 - How to Make Money in Stocks Trilogy

20 A WINNING SYSTEM

Price 300 260 220 190 160 140 120 100 80 70 60 45 38 32 28 24 20 17 15 13 11 Volume 80,000 50,000 30,000 18,000 © 2009 Investor’s Business Daily, Inc.

Mar 1929
ge o e e a Dec 1928
o
Dow Jones Ind. Buy as soon as stock s n s a B recovers back above a c s v e 10-week moving average g a n o k w line on volume. . m v o n Add af fter few weeks below w e k w w 10-week moving average a v g i o line as stock goes back line as stock goes back k b

Sell: climax top o a i : y Buy y B r d k e 10 0 t s n n e b e Breakout week u k k B B volume higher volume higher m o than prior week than prior week o h Mar 1928

S
S
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a t g ks w n t n e k k we io w g g Buy uy u k cup- cup- up u e dle 3 weeks 3 weeks k w 3 tight closes l h t e b e average volume u Dec 1927
Do Not Buy Here! Note this is a t ! 3rd stage base. Seven weeks ago n S S f fast run-up to 91 with stalling, up to 91 with stalling h closes barely up for week on w f greater volume than prior week. p th h Stock also wedges up along lows. Stock also wedges up along lows. p p e

I. n I Wa s h n o D b g t 3d 3 3 ast run n b c l t g a Big EPS turn Big volume on prior r o uptrend to base uptrend to base s n Jun 1927 Mar 1927 Wright Aeronautical increased 464% in 76 weeks.
One of only three companies that continued n e f manufacturing aircraft engines after World War I I manufacturing aircraft engines after World War g a f Most U.S. fighter planes used Wright engines in fighter planes used Wright engines in u e U the 1920s. The revolutionary air-cooled engine the

Most U S
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Dec 1925 Mar 1926 Sep 1925
Wright Aeronautical–1927 Weekly Chart Jun 1925 Mar 1925

Price = 20*eps 15 14 13 12 11 10 9.00 8.00 7.50 7.00 6.50 6.00 5.50 5.00 4.50 4.00 3.50 3.00 2.50 2.25 2.00 1.80 1.60 1.50 1.40 1.30 1.20 1.10 1.00 0.90 0.80 0.75 0.70 0.65 0.60 0.55 Dec 1924