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What are the three yellow and/or three green lines on the long-term chart?

April 26, 2017chart long-term Yellow

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What are the three yellow and/or three green lines on the long-term chart?

1 Answer

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The center yellow line identifies the average growth rate of the price of the stock and the center green line identifies the average growth rate of the earnings. The upper and lower yellow lines are called ‘alert lines’ and they alert us to abnormally high or low prices in relationship to the average growth. The green earnings lines do the same for earnings.