Reading Stock Charts, Part I, continued
Key Points To Remember
- Charts give you a snapshot of a stock's behavior over time. Charts are essential in timing buy and sell decisions. They also provide signals that would be missed if you relied on company fundamentals alone.
- The study of greatest stocks from 1953 to the present found stocks were in consolidation periods, that is, they moved more or less sideways, before they leaped and began their powerful climbs.
- Bases help get rid of weak holders. This gives stocks the chance to move up significantly when the base is completed.
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Related Resources:
Click here to get the 7 Steps For Selecting Winning Stocks, according to the CAN SLIMTM Investment Research Tool.
Go to the Investor's Corner Archives to read IBD's "editor picks" of classic Investor's Corner columns.
Search our archive of Ask Bill O'Neil Q & A's organized by topic.
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