Scan Chart Books Weekly and List Buy Prices

Another way to use the tape productively is to review a comprehensive graph book every week and make a list of stocks that meet your technical plus fundamental selection criteria.

Thenjot down the pivot price where you would consider buying. Also write down the average daily volume for each stock on your prospect list.

Keep this shopping list with you every day for the next couple of weeks when you are watching the ticker tape or the market. In time, one or two of the stocks on your prospect list will begin prancing all over the tape and will approach your buy point. This is the time to get ready to make a possible buy decision—if the stock trades at your buy price and you conclude the day's volume will be up at least 50% above average. Generally, the more demand for a stock at the buy point, the better.

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