Best Choice Software

Long Term according to Best Choice

If you haven't gone through our Long Term Tutorial yet, click here. It is important
that you understand the principals behind our Long Term before you start learning

The long-term chart uses standard open/high/low/close bars to display the price and earnings of a stock. It has logarithmic scaling with the earnings on the left and the price on the right. This is the original Best Choice concept chart that shows the relationship that exists between the price and the earnings. The two scales are totally proportional, so the above chart shows a stable earnings pattern and the price matches it.

To view a chart all you have to do it type in a symbol and click the enter button. The symbol will appear at the top of the chart next to the time frame.You can select a new time frame by clicking the down arrow of the time frame dropdown box.

If you have less than all data selected, you can move the scroller to select a new time frame. This moves both the beginning and end dates. You can also use the colored arrows to fine-tune your stock. To change to a new stock, you can just type the symbol and click the enter key or you can select a stock from a user list.

Another way, you can select a new time frame is by holding the left mouse button down and dragging diagonally across the chart. This will create a white box and when the button is released, the chart will resize for the selected time frame. It will show "User Def" or user defined in the chart time duration box. If you want to change it, click the down arrow and you can select from 1 month to "All Data".

At the top of the chart is the symbol, date, open, high, low, close, the change from one days close to the next, and the volume. If you move the mouse across the screen, you will see the value of that day. You can select a new time frame by holding the left mouse button down and dragging diagonally. This will create a white box and when the button is released, the chart will resize for the selected time frame. You can also select a new time frame by the scroller or by the dropdown list on the tool bar. To change to a new stock, you can just type the symbol and click the enter key or you can select a stock from a user list.

The growth rate of the earnings is the slope of the green lines. This is the rate that the company is making money (50% compounded annually). This is what the company is saying about itself and the green lines can be interpreted, as "This is the company".

The white lines are the price movement. The growth rate of the price is the slope of the yellow lines. It too is sloping at 50% compounded annual. This is like a bank paying 50% interest. As an investor, this is what you are most interested in, because this is the growth rate of your money. Price action can be interpreted, as "This is what people think about the company". If they like it they will run the price up, if they don't like it, they will sell it off. Thus price established a degree of volatility. All stocks have some degree of volatility. The width of the yellow bands measures the volatility.

The grid intensity and colors can be adjusted by using the Program Options icon. For a further explanation of the long term growth charts see the long-term concepts.

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