Cavium and a Lesson in Perspective

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It occurred to me recently that one of the mental trip-ups that can happen when looking at a chart is to think that a chart has "bottomed" or "topped" simply because the price has reached an extreme within the frame of the chart. Mentally, I suspect, we subconsciously assume the border of a chart represents some kind of boundary. This limits us, in my opinion, to seeing just how high (or low) a chart can ultimately go. The only "limit", after all, is $0.

One long position I have, Cavium, is a good example of this. Looking at the chart normally, it seems to have "topped out". But when I use the Resize Graph feature in ProphetCharts, I can make a lot of white space above the current price to see more clearly the potential blast higher a stock like this could take. (You can learn about Resize Graph, or any other ProphetCharts feature, in my book, naturally).

Irrespective of all this, I think it's an interesting graph as a long position: