Users Guide To Wall Street's Most Powerful Sector Rotation Indicator

What are Leedom Charts?

Leedom Charts are a proven, leading indicator of stock prices generated using a proprietary algorithm. The algorithm decodes complex volume and price movements in individual stocks to reveal the unique buying and selling trends of institutional investors. Augmenting traditional fundamental research, the distinctive patterns seen in Leedom Charts provide a window into the future price activity of stocks.

The Leedom Charts Engine

      The proprietary algorithm of Leedom Charts works by identifying supply/demand imbalance patterns in individual stocks, driven by institutional accumulation and distribution pressure. Important imbalances are revealed as distinctive “spike” patterns on the accumulation lines which are generated by the algorithm (see chart below).   Inconsistent or non-trending activity is seen as choppy or flat behavior on the accumulation lines.

       Identifying institutional imbalances holds significant value in gauging future share price direction as accumulation activity increasingly reduces the supply of stock available to investors at current prices. The result is an increased probability of higher share prices. Conversely, distribution activity applies pressure to share prices by increasing the supply of stock. Charting this accumulation trend (Leedom Charts) provides a visual “fingerprint” of institutional activity that investors can use to find stocks that are under significant accumulation or distribution pressure.

Leedom Chart of CREE, Inc.

The Leedom Chart above shows a one year institutional pattern of Cree, a stock under accumulation. The Near-term (lightest line) and Mid-term (medium line) accumulation lines are generated against the share price (darkest line) to display the “stair step” pattern typically seen in stocks under accumulation. The share price begins to follow the large upward spikes (1 & 2) in accumulation. Most examples of Leedom Charts show strikingly clear accumulation or distribution activity that can be used to make specific buy and sell investment decisions. Sections 2-4 of this tutorial provide more specific examples of accumulation and distribution patterns.

Using the LSI Charts Tutorial

Opening the LSI Charts Tutorial pages requires that you have Adobe Acrobat Reader installed on your computer.  You can obtain the Acrobat Reader for free by clicking on the Adobe image below:

Simply scroll down the page or click on the following link to jump to a particular section to learn:

I.  GETTING STARTED: Identifying Key Leedom Chart Patterns
II.  SWIR: A Case Study on Buying and Selling Using Leedom Charts
III.  Buying Stocks Using Leedom Charts
      a.  EPIC Example
      b.  SOHU Example
      c.  BELM Example
      d.  AFOP Example
      e.  TASR Example
      f.  ESST Example
      g.  CACS Example
      h.  AUDC Example
IV.  Selling Stocks Using Leedom Charts
      a.  ACF Example
      b.  FCN Example
      c.  BVF Example
      d.  DYII Example
      e.  NWRE Example