Page 618 - How to Make Money in Stocks Trilogy
P. 618

458 Bonus Chapter
                                                                 400,000
                                                               800,000
                                                          Volume
                                                                   200,000
                                                            4,000,000
                                                              1,600,000
           Price
                                                3.0
                                               3.4
                                             4.0
                                                       1.8
                                                    2.2
                                                  2.6
                     26
                       22
                  34
                   30
                         19
                               12
                                 10
                           16
                             14
             50
               40
                                        6
                                          5
                                      7
                                    8
            S&P 500
                                                       Below average volume
                                                       u
                                                        on breakout week
                                                        e
                                                       ge
                                                       e
                                                        o
                             V-shaped cup
                             V shaped cup
                                      Lagging RS line
                                      Lagging RS line
                              with handle
                                                        b
                                                       o
                              d
                                      S
             No
             Would you buy this stock? No
                             a
             stock?
             ?
                                      L
                                             own week
                                             own week
                                              y volume
             c
                                              u
                                             w
                                              on heavy
                                              y
                                              y
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                                             o
             s
                                             o
                                             Huge do
                                             o
                                             Huge do
                                             o
             this
                                             u
                                              n
             i
                    0
                    down 48% while S&P 500
             buy
                   than normal. Stock was
                   than normal. Stock was
             u
                  Correction was deeper
                  Correction was deeper
                  r
                   a
                  d
             you
             u
                    e
                   o
                     n 7%
                     was down 7%
                     %
                    w
                  w
                     7
             y
                   a
             d
             Would
                    4
                   o
                     as do
                     o
                     as do
                     o
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             W
                                                                     Dec 2003 Mar 2005 Dec 2004 Sep 2004 Jun 2004 Mar 2004  © 2009 Investor’s Business Daily, Inc.
                                                                     Sep 2003
                                                                     Jun 2003
                                                                     Mar 2003
                                                                     Dec 2002
           Sonic Solutions–2004  Weekly Chart                        Sep 2002 Jun 2002
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