So, for investors who are debating whether they should buy a stock and have done all the research to find that said stock is overbought, Cramer suggests waiting for the inevitable pullback that almost always happens.
Some stocks, however, can break through all the traditionally measured ceilings and stay overbought for weeks at a time.
"They defy the notion of the inevitable gravitational pull of the old equilibrium line and can't be contained by any of the various ceilings that overbought conditions usually bump into," Cramer said. "When you spot these highly unusual moves, you may be able to strap yourself into a real moon shot."
Volume is another key tool that chartists use to find pivots. It is often said that volume can be a lie detector for investors to tell if a move is real or not. For example, when a small move happens on light volume, technicians ignore it.
Chartists use volume to determine if large money managers are starting to accumulate or distribute the stock in an aggressive way.
Technicians also measure something called an accumulation distribution line. This involves charting whether a stock closes higher on greater volume on any given day, versus lower, or on low volume.
Most brokerage firms offer this kind of charting on their websites, and while Cramer considers the method to be somewhat arcane, he trusts it because it goes against the grain of conventional thinking and offers a fresh way to look at stock movements.
Cramer saw this occur with shares of Monsanto in July 2012. Though he did not care for the stock of the company at the time, the accumulation distribution line showed that the stock had down days with light volume and up days with heavy volume.
To Cramer, that was a sure sign that more money was flowing into the stock, rather than out of it.
It turns out that Monsanto's stock had started correlating with the price of corn, which was going higher because of new demand for ethanol brought about by federal price supports. Cramer was too concerned about near-term earnings and worries about a shortfall to recognize what was happening.
"Powerful moves can, and often do, elude those who are only focused on the underlying companies and not the action of the stocks themselves," Cramer said.
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