Buying And Selling Tests – 20M

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IMPORTANT POINTS

1. Practice applying the proper principles is important if you want to become proficient in the stock market.

2.           BUYING TESTS 

Objective accomplished on the down side
Activity bullish-volume increasing on rallies and decreasing on reactions                                                                                                                       Preliminary support and selling climax
Stronger than market                                                                                                                                                                                                                     Downward stride broken                                                                                                                                                                                                                 Higher supports
Higher tops
Base forming
Estimated probable profit exceeds indicated risk

               SELLING TESTS

Objective accomplished on the upside
Activity bearish-volume in­creasing on reactions and decreasing on rallies                                                                                                                         Preliminary supply and buying climax
Weaker than market
Upward stride broken
Lower tops
Lower supports
Crown forming
Estimated probable profit exceeds indicated risk

3. Before making any commitment, the profit-risk ratio should be at least 3:1