Page 75 - How to Make Money in Stocks Trilogy
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34
         A WINNING SYSTEM
                                                             120,000
                                                               70,000
                                                          Volume
                                                                40,000
                                                                  20,000
           Price
             100
                                                     4.5
                                                       3.8
                  70
                80
                                      14
                         40
                                           10
                                        12
                    60
                      50
                                 22
                              26
                                     16
                                   19
                             30
                           34
                                              8
                                               7
                                                 6
                                                      you hesitated to sell
                                                       stock on the way up
                                                       stock on the way up
                                                       yp
                                                      ll
                                                    climax top, sell if
                                       10-week line
                                                      ittd t
                                      pullback to
                                                   Fast drop after
                                       k li
                                                      d
                                     Add: first
                                     Add: first
                                                    s
                                                   t
                                      k
                                     s
                                       k
                                                       e
                                      a
                                                      ta
                                       e
                                                       t
                                     f
                                                   p
                                                       o
               ks
               weeks
               6 weeks
                                                      he
                                                   r
                                       0
                                       10
                                      pu
                                                    x
                                     d
               k
               k
             Sell: climax top, price
             price
                                     A
                                                   s
                                                       o
               doubles in last 6 w
               w
             r
                                                      yo
                                                   F
                                                    c
                                                            dry-up on pullback, no
                                                            o
                                                            o
                                                           e
                                                           e
                                                           Note: extreme volume
                                               Note: number of tight
             Sell: climax top
                                                  w
                                                  week from hi to low
                                               g
                                                           u
               a
             t
                                                            k
                                                weekly closes and
                                                d
                                                             selling coming in
                                                             selling coming in
                                                 tiny spreads each
                                                 tiny spreads each
                          high tight flag
                                                         2/1
                                                           v
                        Buy: 4-week
                                                           v
                                                  o
                                                            b
                                               o
                          htfla
                        k
             m
                                                a
                                                 a
                                                           m
                                               e
             c
                                                             i
                                                  h
                          t
                                                e
                        w
                                                            p
                                                 s
                                        t t
                                        with tight
                                        with tigh
                                       t base
                                       t base
                                      10-week
                                      k
                          hti
                                       flat bas
                                                l
                                        g
                                       s
             e
               o
                          t
                                                 e
                                                            o
                                                  o
                                               u
                                                c
                                                           x
                                      e
                                                             c
                                          s
                                          weeks
                          hig
                                        h
                                          e
                                 Buy
                                 y
                                 Buy
                        Bu
                                                 s
                                                kl
                                      -
                                                           : :
                                                             n
                                                            u
                                                k
                                                  k
                                               :
                          h
                          h
                                        w
                                          w
                                      1
                                                           o
                                                             e
                                                  e
                                                e
                                               o
                                       f
                                                 n
                                                            r
                  Dow Jones Ind.
                                   Add
                                   Add
                                                      y
                                                      Huge volume—supply
                                   A
                                                      y
                                              e
                                              e
                                              43-week cup-with-handle
                                              handle
                                                       and demand at work
                                                       and demand at work
                                     Buy
                                     Buy
                                     y
                                                      p
                                              l
                                                       r
                       n
                       Market correction
                                                       w
                                              a
                                                      —
                       t
                                              with
                                              h
                                                      e
                       r
                       c
                                                       a
                                              p-
                                                      l
                                              week cup
                                                       e
                       k
                                              43
                                              4
                                                                     Mar 1957 Jun 1959 Mar 1959 Dec 1958 Sep 1958 Jun 1958 Mar 1958 Dec 1957 Sep 1957 Jun 1957  © 2009 Investor’s Business Daily, Inc.  Universal Controls increased 645% in 51 weeks.
                                                                     Dec 1956
                                                                     Sep 1956
                                                         3/1
                                                                     Jun 1956
                                                                     Mar 1956
                                                                     Dec 1955
                                                                     Sep 1955 Jun 1955
           Universal Controls–1958  Weekly Chart                     Mar 1955 Dec 1954
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