Quiz: Chart Studies – Vertical Charts

The four principal phases of a market campaign are: I) Accumulation, II) Marking Up, III) Distribution, and IV) Marking Down. When a stock is in phases I) and II) it is said to be in a.

To determine the technical position of the various stocks you monitor you have to deal with the following basic factors.

When studying price movement you want to look at the following.

Volume, or intensity of trading, may exert an important confirmatory, modifying or contradictory influence upon the indications given by the price movement.

The volume factor is vital in identifying buying and selling climaxes.

Volume does not help in the study of whether a trading range represents absorption or distribution.

Studying volume and comparative strength and weakness aid us to judge WHEN a stock is ready to move and WHEN it has completed it has completed its preparation for a move.

Following a terminal shakeout professional operators are not likely to let shorts cover or sold-out bulls to get back in on a future reaction at an advantageous price.

If you are incorrect in your judgement, it is usually best to take your loss and close out your position.

Vertical line charts are not a necessary tool for proper timing of commitments.

Proper timing of commitments reduces risk and avoids having your capital tied up with no material return on your investment.

There is danger when a stock does not move up in sympathy with a strong general market.