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          Using Andrews to Buy the Breakout

There we were Dr. Alan Andrews and I looking through the mail he had just received from some of his students. Dr Andrews came across a letter from a student in the New Jersey and smiled. As he showed me the letter he commented 
" Well it couldn't be much easier than this" The letter had two Getty  charts in it.
The professor showed me the first chart with two median lines drawn on it.

 

Dr. Andrews noted that this student likes to wait for prices not to make the median line at least 2 times in a row when there is a correction and then buy on the break out of the correction.

 

" He says he then waits until the price has close beyond the median line like on the red bar on the getty chart above. As I looked through the mail I noticed that there were other examples by the same student of his buy signal. 
 
 
 

First there was an IBM chart where prices did not make 2 median lines in a row as shown below.

 
 

and then there was the chart below with the red bar ....where prices closed beyond the Median line.
 

Then  after I looked at the chart for a while I noticed that within 2 weeks of entry the price of the stock went up over $15 in IBM.  Alan then wrote in note to the student " This is a good start if you add some more of the course concepts you can limit your risk and have price targets."