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What rule to use when in doubt

When you are in doubt about the position of a stock and do not know what its trend is, you should, of course, not trade in it.  Wait until it shows by breaking resistance level, or crossing a resistance level, or until it crosses an important angle, or breaks and important angle before deciding which way it is going to move, especially after it has been in a long deadlock, or in a sideways movement, as referred to in “wall Street Stock Selector.”  As a general rule, when a change in trend takes place of importance, the volume of sales will show it.  The volume of sales usually increases when a stock starts to advance from low levels, or from dullness, and the same after a long period of dullness at a high level, when activity starts on the down side, the volume of sales increases.  When a stock starts up and is in a strong position, it will show it on angles by keeping above strong angles from the bottom.  The same when it starts to decline.  If it is in a very weak position and going very fast, it will show it by the position of angles, that is, dropping below and keeping below strong angles, with the daily, weekly and monthly high and low chart, the important angles cannot be crossed at extreme low levels, until proper time has elapsed, neither can important angles be broke at high levels until sufficient time has elapsed.  Therefore, the angles are very important because when broken they usually mean that the time has run out, whether you know it or not, and  a change in trend will take place.

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