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Short-Term Price Movement
The Charts
page defaults to a one-year chart of the stock price. You can see the chart’s
time frame is listed along the horizontal x-axis and the chart’s price scale is
listed along the vertical y-axis.
Importance of short-term price movement
Before you buy a stock, you want to see that buyers have recently pushed the
stock’s price up. Investors ultimately vote with their wallets, and if they
have been willing to pay increasingly higher prices for a stock during the
short term, chances are that trend will continue and prices will move higher.
Scoring short-term price movement
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Pass—Give this factor a passing score if the stock price is
higher today than it was three months ago.
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Fail—Give this factor a failing score if the stock price is
lower today than it was three months ago.
Looking at the short-term price movement for GOOG in Figure 4
, you would give it a passing score because the price is higher today ($495.90)
than it was three months ago ($387.72).
Short-Term Price Movement: PASS
Figure 4—Short-Term Price Movement
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