What do we look for in a great Configuration chart?If we are talking about a configuration chart for a stock we are considering as an investment (i.e., to Buy or to Short), we are looking for momentum, energy, the beginning stages of a picture that looks like it may shoot off the page. For
example, an enticing visual evaluation for a Buy Configuration chart, might look
like the one shown below where the 5wk and 15wk
appear to be breaking through the 40wk with power and authority: For
a Short Configuration, something like Loews in July 2002 (below) would satisfy a visual evaluation - where the 5wk and 15wk
are falling off the
40wk like a ton and bricks and appear to be headed toward the floor: Close this window |
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