If there is one way in which the Cabot approach to growth investing (as opposed to value investing) differs from that of most advisers, it is that we pay more attention to what investors are actually doing. We do that by looking at the chart that shows price movement, moving averages and volume. Leaving out the double bottoms and tops, heads and shoulders and other classic chart patterns, here are a few basic principles of chart reading. Stock with rising price on increasing volume = bullish. This shows that an increasing number of buy orders are being processed, indicating...
