William J. O'Neil

Your objective isn’t to buy at the cheapest price or near the low, but to begin buying at exactly the right time, when your chances for success are greatest.

You want a stock to prove its strength to you before you invest in it.

you buy at more than 5% to 10% past the precise buy point, you are buying late and will more than likely get caught in the next price correction.

Pivot buy points in correct chart base patterns are not typically based on a stock’s old high price. Most of them occur at 5% to 10% below the prior peak.

The next time you consider buying a stock, check its weekly volume. It’s usually a constructive sign when the number of weeks that the stock closes up in price on above-average weekly volume outnumbers the number of weeks that it closes down in price on above-average volume while still in its chart base.