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Technical Analysis Plain and Simple: Charting the Markets in Your Language, Second Edition
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Technical Analysis Plain and Simple: Charting the Markets in Your Language, Second Edition

by Michael N. Kahn
June 2006
Beginner
352 pages
7h 6m
English
Pearson
Content preview from Technical Analysis Plain and Simple: Charting the Markets in Your Language, Second Edition

Chapter 18. Just What Makes a Stock (Bond, Commodity) Look Good?

As you read in “About This Book,” if you can find at least three of the following characteristics in a stock, the chances are you will pick a winner:

  • Rising price trend as more and more investors jump aboard.

  • Rising volume as investors become more aggressive in their purchases.

  • Strong, but not excessive, price momentum. Anything higher indicates that supply and demand got out of synch.

  • Strong sector. If the sector is doing well, there is likely to be enough business for all stocks in it.

  • Strong market. A rising tide raises most boats.

  • Supportive environment. Low input prices, high output prices, low cost of doing business, and favorable supply and demand in the industry.

These are the ...

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Publisher Resources

ISBN: 0131345974Purchase book