Page 84 - How to Make Money in Stocks Trilogy

38 A WINNING SYSTEM

Price 140 120 100 80 70 60 50 40 34 30 26 22 19 16 14 12 10 8 7 6 5 Volume 1,300,000 800,000 500,000 300,000 180,000 © 2009 Investor’s Business Daily, Inc.

Mar 1965
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o
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200-day moving m a - 2 average line lin e r a Heavy volume increase without w e r n m o same progress as prior week w io e o was the top of the stock c t p o t Dec 1964 Sep 1964

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Mar 1964 Jun 1964
Dow Jones Ind. m m e v i e s s g p Dec 1963
2/1

Buy Buy u back a Cup no up no up no n n u andle handle d ha ha ha Sell: stock doubles from Sell: stock doubles from u o 15 to 34 and heavy h n 4 increased volume with u v e no further price progres c h closing at 32 3 3 g a Sep 1963

k k flat base bas s cos k stock d o 2/1 Jun 1963
Buy Buy y 6-week 6 16 weeks 16 w 6 up in a row p in a row p p up After shakeout, stock e closes mid-range and n range and vi irtually unchanged on huge volume support huge volume support t pp m Mar 1963
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Sell: heavy volume v no price progress up no price progress up p 36-week cup-with-handle 36-week cup-with-handle n with-h p Buy Buy y After shakeout A closes mid- l g n Note: volume accumulation Note: volume accumulation n l e up weeks on volume n Dec 1962 Sep 1962 Chrysler i

e c Bear market 6 i o p Jun 1962 Mar 1962 Dec 1961
Third largest motor vehicl o g producer in the U.S. u p Earnings acceleration Earnings acceleration to a new high to a new high g Sep 1961 Jun 1961

Chrysler–1962 Weekly Chart Mar 1961 Dec 1960

Price = 20*eps 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 0.50 0.45 0.40 0.35 0.30 0.25 0.23