The Money Making Power of Float Charts...
         Accumulation, Breakout, and Follow Through Day Equals Huge Percentage Gains
            (See the bottom of this page for a thorough explanation of these principles)

This Week's Example...Orexigen Therapeutics (OREX)
                                               Up 95% From Its Breakout Day
                                               Up 79% From Its Follow Through Day
                                                  
Check Out All Four Charts Found Below
The first one is an overall or entire view.  The second is the view at the breakout.  The third shows the follow through day.  The fourth is the view at the top.  The float turnover box is like a box car on a railroad track.  The current box is always at the far right.  With the Stockshare V2 software we're able to move it to previous positions.

Here's the Entire View on a Daily Chart

Here's the View at the Breakout Day

Follow Through Day

At the Top of the Run

There are 3 processes that are commonly found on float charts that demonstrate their powerful ability to pick winning stocks:

     1. Accumulation of the floating supply of shares by Smart Money individuals.  The floating supply are the shares actually available for trading.  When a company comes public, they issue shares outstanding.  The company's insiders hold some percentage and sell the rest to the public.  The shares sold to the public are are actually available for trading are called the floating supply of shares or simply the float.  The gray float box on float charts show the distance on the chart that it takes for the cumulative volume to equal the number of shares in the float.  Think of it as the area where new ownership buys a majority holding of the shares available to be traded. 

     2. Breakout - Once the float is tightly held, any new demand leads to a rise in prices which causes the price to breakout above the float box (see charts below).  The breakout is the first indication that prices may be heading higher.  The top of the float box is also a strong line of resistance.  This means that prices might head lower from this point. 

     3. Follow Through - To confirm that prices are indeed moving higher the stocks must have a follow through day.  Follow through days occur when the price moves strongly higher on above average float box volume (150% or greater).  Average Float Box Volume is the average volume within the distance of the float box. The red Average Float Box Volume line tracks it. 

When these three things occur, particularly at the beginning of a new broad market rally,
the result is a big rise in prices.  The example below occurred in the rally that began in
March of 2009.

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Win/Loss Performance Tables
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Float Charts are a new branch of technical analysis that can help you find great money
making stocks!

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