Home > stocks > Spotting buying and selling signals 1885-1900

Spotting buying and selling signals 1885-1900

One of the keys to success in the stock market is having the skills needed to spot when to buy and when to sell securities based on well-known signals that the charts offer as your guide.  The patterns witnessed over the past 100 years have proven to significantly increase one’s chances at finding those stocks of companies that are increasing sales, and experiencing significant growth.

Examples

  • Richmond & Danville – 1885
    America’s first Cup-with-handle chart base.
    Begin with the first week that closes down in price at point A.
    Pattern looks like a cup with handle when viewed from the side.
  • Tennessee Coal & Iron – 1888
    A classic shorter 16-week cup-with-handle (4 wks w/ tight closes at bottom).
  • Northern Pacific  – 1900
    18-week Double Bottom buy signal followed by 10 week cup-with-handle
    Sell at climax top.

Technical Indicators

  • Price up weeks in black. Price down weeks in red.  High, low, close plotted each wk.
  • Weekly trading volume (color matches direction in price).
  • Average weekly trading volume for prior 10 weeks.  Volume increase breakouts.
  • 10 week moving average line of prices.
  • Relative price strength line vs. DJIA. Uptrend means stock is outperforming.
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Categories: stocks
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