How to buy at just the right moment

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  How to buy at just the right moment
   
   
   
   
   
   
   
 
 
  A
  constructive sign easily identified on a chart is large increased volume from
  the day or week before
  

 
 
  

  with the price moving up
  

  

  

  

  

  

  

 
 
  

  This normally indicates
  Accumulation, or professional buying, of a stock
  

  

  

 
 
  A sign of
  potential trouble, or Distribution [professional selling], is increasing
  volume as a stock drops in price
 
 
  If the
  price is trending down, but the volume is also trending down significantly,
  there may be little cause for worry in
 
 
  

  that the decreased volume shows the
  stock is not being heavily sold
  

  

  

 
 
  

  Specific exceptions to these
  generalities are covered in the next lesson
  

  

  

 
 
  There may
  be signals that appear in a chart, on the technical side, that may precede
  publicly or professionally
 
 
  

  known changes in the fundamentals
  

  

  

  

  

  

 
 
  

  This is especially true when leading
  stocks hit their price tops
  

  

  

  

 
 
  

  Some stocks can top while current
  earnings and estimated earnings look great
  

  

 
 
  Price
  consolidation areas or specific types of base patterns occurred in the
  stock's price movement
  

 
 
  

  These bases were formed just before
  the stocks broke out into new high ground in price and
  

 
 
  

  

  then went on to make their biggest
  gains
  

  

  

  

  

 
 
  

  These base patterns were usually
  caused by corrections in the general market indices