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How To Determine The Position Of An Individual Stock – 19M

Todd Butterfield June 10, 2022
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1. Turning points of minor moves can be judged best from vertical charts.

2. Figure charts are used basically in relationship to intermediate or major moves.

3. A minor move up may be: 

     a. a rally from a low point                                                                                                                                                                                                                b. a forerunner of a major advance                                                                                                                                                                                                c. a small move through the tops of a trading range.

A minor move down may be: 

     a. reaction from a high point                                                                                                                                                                                                            b. a forerunner of a major decline                                                                                                                                                                                                    c. a small move through previous support levels.

4. Preparation for a major move may be at the bottom of a decline where accumulation is taking place or resting after a previous advance where re-absorption is taking place.

5. Preparation for a large decline may be at the distribution at the top of an advance, or at a period of rest following a previous decline which gives the indication of a new supply.

6. A neutral position develops when no definite indications are given. This is an important decision.

7. If you miss a buying or selling opportunity, stay neutral until there is another issue in which you may logically take a position.

8. Don’t put a stock in Position 2 until you are reasonably certain that accumulation is nearing completion.

9. If in doubt, place an X? in the Position which you believe the stock is in.

10. Practice placing stocks into the various positions on the Position Sheet.

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