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


Explore Professor Profit's Paradigm: Main Menu
Do you like the tutorial? Make a Donation

This site has been
selected by
Southern
States
University

as a requirement for
Investment Analysis
Course FP420

Questions? Comments? Critique?
We love hearing from you
Contact us at ProfessorProfit@ProfessorProfit.com

Copyright © 2003, 2004, 2005, 2006, 2007 - RNG Cyberrifics, LLC - All rights reserved