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Strategies & Market Trends : Ted Warren's Investolator

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To: KTSinvest who wrote (1476)3/2/2024 5:53:03 PM
From: WEagle1 Recommendation

Recommended By
investolator2000

   of 1795
 
Hi KTS.

Here is what I do and I think that I am also speaking for I2000 for the most part.

I start with a 10 year monthly bar chart to get an overall look. Then, if there is a point where the stock was much higher in price to the point that it distorts what I can see when the stock is trading in a lower price range, I will change my time period to not include the higher price range and allow me to see more detail in the lower price range. I will also expand my time range to 15 years or all available data.

I want to know how how high the price has gotten in the past and I want to see how much the price bounces around when it appeared to be in a quiet period when a higher price peak was included in the chart. (High price points tend to flatten quiet periods.)

Obviously, the opposite effect can be a little deceiving as well. Seeing only a quiet period when my whole chart is showing just the low range can cause me to have a very different opinion of the price movement so I have to remember that some of that movement may not actually matter.

What I might get concerned about is that when I get a chart that is tight in on the quiet period and I see the price really is still very flat. It make me feel that the stock is nearly dead.

I2000 and I will also look at daily and weekly bar charts but our primary read is of monthly bar charts since it is the monthly bars that Ted emphasized and described what we are looking for including the movement that produces the actual buy point.

I will also encourage you to read Ted's book multiple times. I've read it four or five times and every time I read it I pick up on important things that I missed before.

I hope this gives you some things to think about and incorporate in your screenings and your frequently checks of you shocks that make your watch list.

WEagle
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