1. Learning on-Line Learn on-Line About How To Read A… Stock Chart Advanced… Session #2… Using Our… Tools

2. Learning on-Line When The Animations Stop Just Click Your… Left Mouse Button To… Continue… To… Continue… Click Now!

3. Learning on-Line VTSS  March 2000 Daily Price Chart TREND-1 TURBO-1 EW-A EW-A (A) EW-A EW-A EW-A (A) Now Look At… Turbo-1… Turbo-1… As It Moved Above Its… Centerline Again… Click And… You Will Also See That The Price Broke Above… The… The… (A) Down Trend Line… Line… At The Same Time… Click And… You Will Also Notice That… Trend-1… Trend-1… Moved Above Its… Blue Line… Line… For The First Time Since… This Long Down Move Started… Click These Three Steps… Steps… Create Valid… Valid… Aggressive Break Outs… ClickClick Let’s Now Look… Look… At A Chart Of The… 3-Day Indicators… Turbo-3… Turbo-3… And… Trend-3… Click With Both… Both… Turbo-1… Turbo-1… And… And… Trend-1 Trend-1 Positive… You Need To Look At… Turbo-3… To See If This Up Move Will Be… Be… Extended Further…

4. Learning on-Line ClickClick We Know The… Valid Break Out… Out… Occurred On The Daily Chart… On… This Date… 5/30/00 Click VTSS  April 2000 Click But… But… On 5/30/00… Turbo-3… Turbo-3… Was Still Below Below Its Centerline… So… So… The Up Momentum… Momentum… Is Coming From The… Daily Indicators… This Is… Is… OK… OK… But… But… If If Turbo-3… Turbo-3… Can’t Get Above Above Its Centerline… This Up Move Will… Will… STOP… We Know… Know… There Is A (C) (C) (C) (C) Down Trend Line… Line… Somewhere Just Above Us… And That Could Act Like… A Resistance Line… Why?… Why?… Because… Because… Turbo-3… Turbo-3… Is Below Its Centerline… And… And… That Tells Us A (C)onservative… (C)onservative… Down Trend Line Is… Present… Click So… We Must Use Our… EW-A… And… EW-C… EW-C… Up Trend Line… Tools… To Warn Us Of The… Danger… Danger… Of A… Price Break… Click Especially… Especially… If This… This… Price Break… Break… Happens Before… Turbo-3… Can Move Above Above Its Centerline… Click That Would Be… Our Signal… Signal… To Get Out… Click TREND-3 TURBO-3 (A) (C) EW-C But… But… As You Can See… Turbo-3… Turbo-3… Moved Above Above Its Centerline… On… On… 6/02/00… 6/02/00… Extending… This Up Move… Click 3-Day Price Chart

5. Learning on-Line ClickClick At This Point…You… Haven't Developed Enough Trust In The… Indicators… To Know A… Profitable Break-Out… As Yet… From… A False One… Click VTSS  March 2000 Click Daily Price Chart TREND-1 TURBO-1 EW-A EW-A (A) (A) ClickClick Resistance Line Click But… If You Do Your… Home Work… Practice… And… Paper Trade… You… Will Learn… The Difference… Do You Notice… Notice… Any Difference Between This… This… Current Break-Out… And… The Break-Out… Back In… In… April…? Notice… That The Current… Trend-1… Trend-1… Is Now Above Above Its… Blue line… While… Trend-1… Trend-1… Back In April… Was Below Below Its… Blue Line… You Can See… The… Current Trend-1… Indicator… Indicator… Went Into A Much… Stronger Position… By Going Above Its… Its… Blue Line… Line… On The Break-Out… Let’s Look At The Current… Valid Break-Out… Normally… At This Point… You Wouldn’t Know… If… Turbo-3… Is Going Above its… Centerline… Let’s Say… You Bought On This Break-Out… Since Turbo-3… Can’t Help Us Yet… There Is Another… Tool… You Can Use… This… This… Tool… Tool… Is Called A… Resistance Line… Line… By Moving Above This It Tells You The Up-Move Is Being… Extended… This Was A Strong Break-Out… Over The… Resistance Line… Because It Closed… Very Near Its High… ClickClick

6. Learning on-Line ClickClick You Can See… See… How Strong The Break-Out Break-Out Was… Was… Because It Carried Over Into The Next Day… By…Creating An… Open Gap… Gap… In The Price… VTSS  March 2000 Daily Price Chart TREND-1 TURBO-1 EW-A EW-A (A) (C) (A) R esistance L ine Did You Forget: Turbo-3… Turbo-3… Just Broke-Out… Broke-Out… On This Same Day… Which Means… That Price… Price… Is Above Above Our… Our… (C)… (C)… Down Trend Line… GAP

7. Learning on-Line Click (A) (C) (C) This Chart Shows… Shows… The Date Of A… Break-Out… Break-Out… By… Turbo-3… Above Above Its Centerline… On… On… 6/02/00 TURBO-1 TURBO-3 One Day Chart One Day Indicator Three Day Indicator

8. Learning on-Line Click VTSS  March 2000 Click Daily Price Chart TREND-1 TURBO-1 EW-A EW-A (A) (C) (A) ClickClick R esistance L ine Click Most Down Trend Lines… Lines… Act like… Resistance But… But… Because The Price Is Already Above It… It… It’s Acting Like… A Support Line… You… Don’t Want To See… The Price Close Below This… Support Line… That Would Tell You… The Price Is… Coming Down… To Close The… GAP… Now That… Turbo-3… Is Above Its Centerline… Its Adding… Up-Side Momentum… And… Extending The Up-Move… But… Did You Forget To Draw An… EW-A…. EW-A…. Up-Trend Line… Remember: Remember: Up-Trend Lines… Are Drawn On… Price Lows … When… The Price Moves Above Above A… A… Resistance Line… That’s The Time You Can… Steepen… Steepen… Your… Your… EW-A Up-Trend line… As Long As… We Don’t Close Below The… EW-A2… Up-Trend Line… Or… EW-C… Up-Trend line… We Stay With The… Up-Move… Now… Were You Able To… Anticipate… The Next Problem Area…? ClickClick EW-A S upport L ine R-L EW-A2 There Is Another… Resistance Line… Line… Just Above The Current Price… We… Must Get Above It… It… Or… Or… This Up-Move Will… Will… STOP… Click GAP

9. Learning on-Line Click VTSS  March 2000 Click Daily Price Chart TREND-1 TURBO-1 EW-A EW-A (A) (A) ClickClick R esistance L ine Click Did You See… The Close Close Below The.. The.. EW-A2… Up-Trend Line… If… You Are A… Short Term Investor… You Could Use This… Close Below The… EW-A2 Up-Trend Line… As A… Sell Signal… But… Remember: When… Turbo-3… Goes Above Its Centerline… That Tells You An… EW-C… Up-Trend Line… Is Also On The Chart… But… Remember: When… Turbo-3… Goes Above Its Centerline… That Tells You An… EW-C… Up-Trend Line… Is Also On The Chart… Where… Do You Start The… The… EW-Conservative… EW-Conservative… Up-Trend Line…? From Just Before… The Break-Out… Break-Out… And… Include The Break-Out.. When… Do You Draw A… EW-C Up-Trend Line… On The Chart? After… Turbo-3… Turbo-3… Moves Above Its Centerline… EW-A S upport L ine R-L EW-A2 EW-C Click (C)

10. Learning on-Line Click VTSS  March 2000 Click ClickClickClick We… Like To Start The… The… EW-C Up-Trend line… line… On The 3-Day Chart… It Gives a Clear Picture Where To Locate The… The… EW-C… Up-Trend line… You’ll Notice… A Number Of Things Happening… When An Up-Move… Extended By… Turbo-3… …TOPS OUT… First… The… Price Drops… Through The… EW-C… Up-Trend Line… Next… Turbo-3’s Red Line… Line… Goes… Goes… Flat… Or… Or… It Can Look Like An… Inverted… V… Like This… This…  You… Can Use A Trend Line On… On… Turbo-3… Turbo-3… To Give You A Warning… As Long As… Is Moving Up… Or Side Ways… Ways… It’s…OK… Here Is A Real Tip Off… If The… The… EW-C Up-Trend Line… Line… Is Broken On The Down Side… Before… Before… Trend-3’s Red Line… Line… Goes… Goes… Above The Blue Line… Click TREND-3 TURBO-3 3-Day Price Chart EW-C EW-C Flat

11. Learning on-Line This Ends This Session On Advanced… Session #2… Reading A… Stock Chart