14. Analysis Tool #11: Price Charts

Even if you do a thorough fundamental analysis, sometimes you’ll be wrong. Perhaps bad news is brewing that insiders know about but haven’t made public. Maybe your candidate is about to be blindsided by a competitor’s superior product. It’s possible that you’ve overlooked an economic trend, such as changing interest rates, which will adversely affect your candidate’s market.

Whatever the reason, you can often avoid unnecessary losses by looking at a company’s stock price chart before you buy. You don’t have to be a charting maven to get useful information from a chart.


Stock prices tend to move in trends. A stock price moving ever higher is in an uptrend, as shown in Figure 14-1. Stocks moving relentlessly ...

Get Fire Your Stock Analyst!: Analyzing Stocks On Your Own, Second Edition now with the O’Reilly learning platform.

O’Reilly members experience live online training, plus books, videos, and digital content from nearly 200 publishers.