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Step 11: Charts

The stock price versus its 200-day moving average is the only relevant price chart factor because value investors should give primary weight to their calculated buy and sell target prices to establish entry and sell points. Typically, a value stock's trading price will be below or near its MA. ATI was trading below its 200-day MA in March 2001.

Value investors should be wary of stocks trading more than 10 percent above their 200-day MAs. It usually means that you are too late to the party.


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