Emphasis should be placed on the Profit & Loss charts, both of which should be climbing steadily for at least the last 18 months. Trendability and Gappiness are somewhat less important.The P&L charts are a graphical representation of the profit of a $10k trading account over time.Grading SystemGrade        Flag           DescriptionA+             Yes :-)        Ideal, but still do your own research. A               Yes :-)        Good, but has one or two weaknesses.A/A-          Maybe :-|   Okay, might be worth a gamble.A-             No :-(         Poor, not something to swing trade right now. None        No :-(         Bad, should probably be avoided. Never       No :-(         Awful, will probably never be a good trade. Any deviation from the following criteria will result in a pick getting marked down, the greater the number of deviations the lower the grade.Profit & Loss Charts:     Both should be climbing smoothly from the lower left to the upper right with little sideways movement.    Short periods (<6 months) of sideways movement are okay.Stock Price Chart:     Trendability - No dramatic spikes in price.             Few periods of sideways movement or choppiness.     Gappiness - No large gaps - overnight changes in price.                   Small gaps within trends can be ignored. Trading Report:     The trading report shows the actual trades and Profit/Loss that is displayed in the P&L chart. The trading     report can be used to double-check data when the P/L chart might appear to be flat.Price:    The stock should have been trading above $5 for at least the last 12 months, as penny stocks have a          nasty habit of crashing and burning.Next: Trading Report Prev: AnalysisContents: PowerX Analyzer User Guide