From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #2689 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk Content-Transfer-Encoding: quoted-printable X-No-Archive: yes canslim-digest Wednesday, July 31 2002 Volume 02 : Number 2689 In this issue: RE: [CANSLIM] DCOM - B/O rules [CANSLIM] banks Re: [CANSLIM] banks Re: [CANSLIM] DCOM - B/O rules RE: [CANSLIM] banks Re: [CANSLIM] DCOM - B/O rules ---------------------------------------------------------------------- Date: Wed, 31 Jul 2002 11:09:26 -0400 From: "Duke Miller" Subject: RE: [CANSLIM] DCOM - B/O rules You're starting to sound like me, Patrick! Duke - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of Patrick Wahl Sent: Wednesday, July 31, 2002 9:53 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] DCOM - B/O rules Something about this one tells me that while the IBD might call it a breakout now, if the breakout failed this is the sort of stock they would put in the Investors Corner as an example of the sort of breakout you shouldn't buy. No handle, of course it failed (they will say). I would be a little wary of this one. On 31 Jul 2002 at 5:47, Katherine Malm wrote: > Here's a quote from today's "Big Picture" > Dime Community Bancshares (DCOM), which was highlighted in Monday > evening's WebLink, broke out of a 10-week, double-bottom base. The > stock climbed 1.46 to 26.90 on more than four times normal volume. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 31 Jul 2002 11:07:32 -0400 From: "Ann" Subject: [CANSLIM] banks It seems that the bank stocks are defying the M. Did anyone catch VIBC?? Ann - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 31 Jul 2002 08:22:59 -0700 From: "zillagirl" Subject: Re: [CANSLIM] banks news out on vibc today-a dutch bank is buying for 15.10 a share. - ----- Original Message ----- From: "Ann" To: "CANSLIM Listserv" Sent: Wednesday, July 31, 2002 8:07 AM Subject: [CANSLIM] banks > It seems that the bank stocks are defying the M. > > Did anyone catch VIBC?? > > Ann > > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. > - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 31 Jul 2002 11:22:26 -0400 From: "Donald Wallker" Subject: Re: [CANSLIM] DCOM - B/O rules This is a multi-part message in MIME format. - ------=_NextPart_000_0008_01C23884.8C689D60 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Ann - - In connection with my remarks about JCOM you should note that = IBD"s Rael Most Active noted today that : "J2 Global Communications = (JCOM) retreated 0.62 to $20.08 on more than four times its normal trade = after clearing a 10-week base-on-base structure Friday." Moreover, it = is of interest to note that today JCOM traded as low as $18.50 thus far. = - - Donald=20 - ----- Original Message -----=20 From: Donald Wallker=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, July 31, 2002 10:59 AM Subject: Re: [CANSLIM] DCOM - B/O rules Ann -- If you would like to look at another stock to check out, try = JCOM. Its overall rating is 98 A plus, its 1st in all rankings of 35 = stocks in its group., its ratings are 81,99,A plus, C and A minus. I = wonder if it might be considered a good buy today, since "M" is driving = it down after a couple of great days from the breakout. - Donald ----- Original Message -----=20 From: Ann=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, July 31, 2002 8:50 AM Subject: Re: [CANSLIM] DCOM - B/O rules I have written down (though I don't know where I got it) that WON = says that in this M, we can accept handles which go as low as = 20-30%--also, that we shouldn't chase a stock more than 2-3% above = pivot. Ann ----- Original Message -----=20 From: Mike Gibbons=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, July 31, 2002 12:37 AM Subject: RE: [CANSLIM] DCOM - B/O rules I see it more as a cup-with-handle (but when the only tool you = have is a hammer, everything looks like a nail!) because the two dips = were not of equal depth, but I'm not sure what the tolerance limits are. However, as a CwH it formed a pivot at $25.90 on 7/10. It then = went on to dip to a low of $20.20 in the handle, which was a 22% drop. = WON says that a stock should only correct by at most 15% in the handle = (although there are inconsistent statements on this) so it didn't = qualify as a CwH either (but then virtually nothing has in the last = couple of weeks). Nevertheless, todays breakout was very strong and = could be buyable up to $27.12 (5% above pivot). Aloha, Mike Gibbons Proactive Technologies, LLC http://www.proactech.com -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine Malm Sent: Tuesday, July 30, 2002 2:46 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] DCOM - B/O rules Hi Victor, I'll leave the specific analysis of the DCOM chart to somebody = else, but in the meantime, here's something to get you started: Question=20 Can a double-bottom base have a handle, or is it just = the start of another base?=20 =20 Answer=20 In a double-bottom base, the pivot (buy) point typically = occurs when the stock clears the peak in the middle of the W-shaped = pattern. Sometimes, double bottoms will form handles before they reach = this point. In those situations, the pivot point is when the stock = clears the highest price point in the handle area. The handle should = drift downward slightly and usually form over a period of one to seven = weeks. Course 1 in the IBD Learning Center on our Web site has a = lesson on chart reading. To get there directly, go to this link - = http://www.investors.com/learn/B09.asp=20 Also, go to our Investor's Corner archive entitled "What = Can Technical Indicators Tell Me?" to view past articles on this topic - = http://www.investors.com/learn/IC.asp#tech=20 Our "Ask Bill O'Neil" archive offers a compilation of = Q&A's on the subject of chart reading at this link - = http://www.investors.com/askBill/Search_ByTopic.asp?TopicID=3D5 --Katherine=20 ----- Original Message -----=20 From: vchang@win-invest.com=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, July 30, 2002 7:18 PM Subject: [CANSLIM] DCOM - B/O rules MessageOn Wedsday's edition (today) IBD listed DCOM as b/o = from a double bottom. On Tuesday IBD weblink said " ... Dime hit 25.94 = Monday, just missing a breakout..." . As a newbie trying to learn more about charts and breakouts, = this seems like a great example to check my understanding. If I am getting it right, the reason why DCOM is deemed to = have b/o is because of the following two easons: a) It closed at 26.90 having achieved an high of 27.0, and = that is above the previous high of 26.80 back in May 17, 2002. b) The new high was achieved at a volume 1,056,800 which is = 378% up from the day before and four times the average daily volume of 221,100 What is the exact rule for a breakout mathematically? (Lets = say that I were to program it in say Metastock?) Base on this case I can see two rules at least (in = pseudo-code): IF today's high is greater than the previous high (is this the = all time high or just the rolling 52 week high?) AND IF today's volume is greater than N times the normal volume = (is this some sort of moving average of the daily volume, or just = yeaterday's volume) THEN yippe it is a B/O Is there any "fuzziness" to the above rules? BTW, the fundamentals on DCOM also look great, ignoring M for = a moment, is this a valid CANSLIM candidate stock? Rgds Victor Chang - ------=_NextPart_000_0008_01C23884.8C689D60 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Ann - - In connection with my remarks = about JCOM=20 you should note that IBD"s Rael Most Active noted today that : "J2 Global Communications = (JCOM) = retreated=20 0.62 to $20.08 on more than four times its normal trade after clearing a = 10-week=20 base-on-base structure Friday."   Moreover, it is of interest = to note=20 that today JCOM traded as low as $18.50 thus far.  -  -=20 Donald 
 
----- Original Message -----
From:=20 Donald = Wallker=20
Sent: Wednesday, July 31, 2002 = 10:59=20 AM
Subject: Re: [CANSLIM] DCOM - = B/O=20 rules

Ann -- If you would like to look at = another stock=20 to check out, try JCOM.  Its overall rating is 98 A plus, its 1st = in all=20 rankings of 35 stocks in its group., its ratings are 81,99,A plus, C = and A=20 minus.  I wonder if it might be considered a good buy today, = since "M" is=20 driving it down after a couple  of great days from the breakout. = - -=20 Donald
----- Original Message -----
From:=20 Ann
Sent: Wednesday, July 31, = 2002 8:50=20 AM
Subject: Re: [CANSLIM] DCOM - = B/O=20 rules

I have written down (though I don't know where I = got it)=20 that WON says that in this M, we can accept handles which go as low = as=20 20-30%--also, that we shouldn't chase a stock more than 2-3% above=20 pivot.
 
Ann
----- Original Message ----- =
From:=20 Mike Gibbons
To: canslim@lists.xmission.com= =20
Sent: Wednesday, July 31, = 2002 12:37=20 AM
Subject: RE: [CANSLIM] DCOM = - - B/O=20 rules

I see it more as a cup-with-handle (but when the only = tool you have=20 is a hammer, everything looks like a nail!) because the two dips = were not=20 of equal depth, but I'm not sure what the tolerance limits=20 are.
 
However, as a CwH it formed a pivot at $25.90 on 7/10. It = then went=20 on to dip to a low of $20.20 in the handle, which was a 22% drop. = WON says=20 that a stock should only correct by at most 15% in the handle = (although=20 there are inconsistent statements on this) so it didn't qualify as = a CwH=20 either (but then virtually nothing has in the last couple of = weeks).=20 Nevertheless, todays breakout was very strong and could be buyable = up to=20 $27.12 (5% above pivot).
 
Aloha,
 
Mike Gibbons
Proactive = Technologies,=20 LLC
http://www.proactech.com
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of = Katherine=20 Malm
Sent: Tuesday, July 30, 2002 2:46 = PM
To:=20 canslim@lists.xmission.com
Subject: Re: [CANSLIM] DCOM = - - B/O=20 rules

Hi Victor,
 
I'll leave the specific analysis of the DCOM chart to = somebody=20 else, but in the meantime, here's something to get you = started:
 
Question
  Can a double-bottom base have a handle, = or is=20 it just the start of another base?
3D""=20
  Answer
 
In a double-bottom base, the=20 pivot (buy) point typically occurs when the stock clears = the peak=20 in the middle of the W-shaped pattern. = Sometimes,=20 double bottoms will form handles before they reach this = point. In=20 those situations, the pivot point is when the stock clears = the=20 highest price point in the handle area. The handle should = drift=20 downward slightly and usually form over a period of one to = seven=20 weeks.

Course 1 in the IBD Learning Center on our = Web site=20 has a lesson on chart reading. To get there directly, go = to this=20 link - http://www.investors.com/learn/B09.asp=20

Also, go to our Investor's Corner archive entitled = =93What=20 Can Technical Indicators Tell Me?=94 to view past articles = on this=20 topic - http://www.investors.com/learn/IC.asp#tech=20

Our =93Ask Bill O=92Neil=94 archive offers a = compilation of=20 Q&A=92s on the subject of chart reading at this link - = = http://www.investors.com/askBill/Search_ByTopic.asp?Topic= ID=3D5
 
--Katherine
----- Original Message ----- =
From:=20 vchang@win-invest.com
To: canslim@lists.xmission.com= =20
Sent: Tuesday, July 30, = 2002 7:18=20 PM
Subject: [CANSLIM] DCOM = - - B/O=20 rules

MessageOn Wedsday's edition (today) IBD listed = DCOM as=20 b/o from a double
bottom.  On Tuesday IBD weblink said = " ...=20 Dime hit 25.94 Monday, just
missing a breakout..." = .

As a=20 newbie trying to learn more about charts and breakouts, this = seems=20 like
a great example to check my understanding.

If I = am=20 getting it right, the reason why DCOM is deemed to have b/o=20 is
because of the following two easons:

a) It closed = at=20 26.90 having achieved an high of 27.0, and that is above=20 the
previous high of 26.80 back in May 17, 2002.

b) = The new=20 high was achieved at a volume 1,056,800 which is 378% up from=20 the
day before and four times the average daily volume of=20 221,100

What is the exact rule for a breakout = mathematically?=20 (Lets say that I were
to program it in say = Metastock?)

Base=20 on this case I can see two rules at least (in = pseudo-code):

IF=20 today's high is greater than the previous high (is this the = all time=20 high
or just the rolling 52 week high?)
AND
IF = today's volume=20 is greater than N times the normal volume (is this = some
sort of=20 moving average of the daily volume, or just yeaterday's=20 volume)
THEN yippe it is a B/O

Is  there any=20 "fuzziness" to the above rules?

BTW, the fundamentals = on DCOM=20 also look great, ignoring M for a moment, is
this a valid = CANSLIM=20 candidate stock?

Rgds

Victor=20 = Chang


- ------=_NextPart_000_0008_01C23884.8C689D60-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 31 Jul 2002 09:21:08 -0600 From: "David Taggart" Subject: RE: [CANSLIM] banks they could have gotten more - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of zillagirl Sent: Wednesday, July 31, 2002 9:23 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] banks news out on vibc today-a dutch bank is buying for 15.10 a share. - ----- Original Message ----- From: "Ann" To: "CANSLIM Listserv" Sent: Wednesday, July 31, 2002 8:07 AM Subject: [CANSLIM] banks > It seems that the bank stocks are defying the M. > > Did anyone catch VIBC?? > > Ann > > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. > - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 31 Jul 2002 11:25:18 -0400 From: "Ann" Subject: Re: [CANSLIM] DCOM - B/O rules This is a multi-part message in MIME format. - ------=_NextPart_000_010D_01C23884.F33E9A80 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Thank you. I was looking at each of the bases and seeing that they = weren't the 7 weeks than WON recommends. But I see now that you count = the whole structure. ----- Original Message -----=20 From: Donald Wallker=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, July 31, 2002 11:22 AM Subject: Re: [CANSLIM] DCOM - B/O rules Ann - - In connection with my remarks about JCOM you should note that = IBD"s Rael Most Active noted today that : "J2 Global Communications = (JCOM) retreated 0.62 to $20.08 on more than four times its normal trade = after clearing a 10-week base-on-base structure Friday." Moreover, it = is of interest to note that today JCOM traded as low as $18.50 thus far. = - - Donald=20 ----- Original Message -----=20 From: Donald Wallker=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, July 31, 2002 10:59 AM Subject: Re: [CANSLIM] DCOM - B/O rules Ann -- If you would like to look at another stock to check out, try = JCOM. Its overall rating is 98 A plus, its 1st in all rankings of 35 = stocks in its group., its ratings are 81,99,A plus, C and A minus. I = wonder if it might be considered a good buy today, since "M" is driving = it down after a couple of great days from the breakout. - Donald ----- Original Message -----=20 From: Ann=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, July 31, 2002 8:50 AM Subject: Re: [CANSLIM] DCOM - B/O rules I have written down (though I don't know where I got it) that WON = says that in this M, we can accept handles which go as low as = 20-30%--also, that we shouldn't chase a stock more than 2-3% above = pivot. Ann ----- Original Message -----=20 From: Mike Gibbons=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, July 31, 2002 12:37 AM Subject: RE: [CANSLIM] DCOM - B/O rules I see it more as a cup-with-handle (but when the only tool you = have is a hammer, everything looks like a nail!) because the two dips = were not of equal depth, but I'm not sure what the tolerance limits are. However, as a CwH it formed a pivot at $25.90 on 7/10. It then = went on to dip to a low of $20.20 in the handle, which was a 22% drop. = WON says that a stock should only correct by at most 15% in the handle = (although there are inconsistent statements on this) so it didn't = qualify as a CwH either (but then virtually nothing has in the last = couple of weeks). Nevertheless, todays breakout was very strong and = could be buyable up to $27.12 (5% above pivot). Aloha, Mike Gibbons Proactive Technologies, LLC http://www.proactech.com -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine Malm Sent: Tuesday, July 30, 2002 2:46 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] DCOM - B/O rules Hi Victor, I'll leave the specific analysis of the DCOM chart to somebody = else, but in the meantime, here's something to get you started: Question=20 Can a double-bottom base have a handle, or is it just = the start of another base?=20 =20 Answer=20 In a double-bottom base, the pivot (buy) point = typically occurs when the stock clears the peak in the middle of the = W-shaped pattern. Sometimes, double bottoms will form handles before = they reach this point. In those situations, the pivot point is when the = stock clears the highest price point in the handle area. The handle = should drift downward slightly and usually form over a period of one to = seven weeks. Course 1 in the IBD Learning Center on our Web site has = a lesson on chart reading. To get there directly, go to this link - = http://www.investors.com/learn/B09.asp=20 Also, go to our Investor's Corner archive entitled "What = Can Technical Indicators Tell Me?" to view past articles on this topic - = http://www.investors.com/learn/IC.asp#tech=20 Our "Ask Bill O'Neil" archive offers a compilation of = Q&A's on the subject of chart reading at this link - = http://www.investors.com/askBill/Search_ByTopic.asp?TopicID=3D5 --Katherine=20 ----- Original Message -----=20 From: vchang@win-invest.com=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, July 30, 2002 7:18 PM Subject: [CANSLIM] DCOM - B/O rules MessageOn Wedsday's edition (today) IBD listed DCOM as b/o = from a double bottom. On Tuesday IBD weblink said " ... Dime hit 25.94 = Monday, just missing a breakout..." . As a newbie trying to learn more about charts and breakouts, = this seems like a great example to check my understanding. If I am getting it right, the reason why DCOM is deemed to = have b/o is because of the following two easons: a) It closed at 26.90 having achieved an high of 27.0, and = that is above the previous high of 26.80 back in May 17, 2002. b) The new high was achieved at a volume 1,056,800 which is = 378% up from the day before and four times the average daily volume of = 221,100 What is the exact rule for a breakout mathematically? (Lets = say that I were to program it in say Metastock?) Base on this case I can see two rules at least (in = pseudo-code): IF today's high is greater than the previous high (is this = the all time high or just the rolling 52 week high?) AND IF today's volume is greater than N times the normal volume = (is this some sort of moving average of the daily volume, or just = yeaterday's volume) THEN yippe it is a B/O Is there any "fuzziness" to the above rules? BTW, the fundamentals on DCOM also look great, ignoring M = for a moment, is this a valid CANSLIM candidate stock? Rgds Victor Chang - ------=_NextPart_000_010D_01C23884.F33E9A80 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Thank you. I was looking at each of the bases and = seeing that=20 they weren't the 7 weeks than WON recommends. But I see now that you = count the=20 whole structure.
----- Original Message -----
From:=20 Donald = Wallker=20
Sent: Wednesday, July 31, 2002 = 11:22=20 AM
Subject: Re: [CANSLIM] DCOM - = B/O=20 rules

Ann - - In connection with my remarks = about JCOM=20 you should note that IBD"s Rael Most Active noted today that : "J2 Global Communications = (JCOM) retreated=20 0.62 to $20.08 on more than four times its normal trade after clearing = a=20 10-week base-on-base structure Friday."   Moreover, it is of = interest to note that today JCOM traded as low as $18.50 thus = far. =20 -  - Donald 
 
----- Original Message -----
From:=20 Donald = Wallker=20
Sent: Wednesday, July 31, = 2002 10:59=20 AM
Subject: Re: [CANSLIM] DCOM - = B/O=20 rules

Ann -- If you would like to look at = another=20 stock to check out, try JCOM.  Its overall rating is 98 A plus, = its 1st=20 in all rankings of 35 stocks in its group., its ratings are 81,99,A = plus, C=20 and A minus.  I wonder if it might be considered a good buy = today,=20 since "M" is driving it down after a couple  of great days from = the=20 breakout. - Donald
----- Original Message ----- =
From:=20 Ann=20
To: canslim@lists.xmission.com= =20
Sent: Wednesday, July 31, = 2002 8:50=20 AM
Subject: Re: [CANSLIM] DCOM = - - B/O=20 rules

I have written down (though I don't know where = I got it)=20 that WON says that in this M, we can accept handles which go as = low as=20 20-30%--also, that we shouldn't chase a stock more than 2-3% above = pivot.
 
Ann
----- Original Message ----- =
From:=20 Mike Gibbons =
To: canslim@lists.xmission.com= =20
Sent: Wednesday, July 31, = 2002=20 12:37 AM
Subject: RE: [CANSLIM] = DCOM - B/O=20 rules

I see it more as a cup-with-handle (but when the only = tool you=20 have is a hammer, everything looks like a nail!) because the two = dips=20 were not of equal depth, but I'm not sure what the tolerance = limits=20 are.
 
However, as a CwH it formed a pivot at $25.90 on 7/10. = It then=20 went on to dip to a low of $20.20 in the handle, which was a 22% = drop.=20 WON says that a stock should only correct by at most 15% in the = handle=20 (although there are inconsistent statements on this) so it = didn't=20 qualify as a CwH either (but then virtually nothing has in the = last=20 couple of weeks). Nevertheless, todays breakout was very strong = and=20 could be buyable up to $27.12 (5% above = pivot).
 
Aloha,
 
Mike Gibbons
Proactive = Technologies,=20 LLC
http://www.proactech.com
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of = Katherine=20 Malm
Sent: Tuesday, July 30, 2002 2:46 = PM
To:=20 canslim@lists.xmission.com
Subject: Re: [CANSLIM] = DCOM - B/O=20 rules

Hi Victor,
 
I'll leave the specific analysis of the DCOM chart to = somebody=20 else, but in the meantime, here's something to get you = started:
 
Question
  Can a double-bottom base have a = handle, or is=20 it just the start of another base?
3D""=20
  Answer
 
In a double-bottom base, the=20 pivot (buy) point typically occurs when the stock clears = the=20 peak in the middle of the W-shaped = pattern.=20 Sometimes, double bottoms will form handles before they = reach=20 this point. In those situations, the pivot point is when = the=20 stock clears the highest price point in the handle area. = The=20 handle should drift downward slightly and usually form = over a=20 period of one to seven weeks.

Course 1 in the IBD = Learning Center on our Web site has a lesson on chart = reading.=20 To get there directly, go to this link - http://www.investors.com/learn/B09.asp=20

Also, go to our Investor's Corner archive = entitled =93What=20 Can Technical Indicators Tell Me?=94 to view past = articles on this=20 topic - http://www.investors.com/learn/IC.asp#tech=20

Our =93Ask Bill O=92Neil=94 archive offers a = compilation of=20 Q&A=92s on the subject of chart reading at this link = - - = http://www.investors.com/askBill/Search_ByTopic.asp?Topic= ID=3D5
 
--Katherine
----- Original Message ----- =
From:=20 vchang@win-invest.com
To: canslim@lists.xmission.com= =20
Sent: Tuesday, July = 30, 2002=20 7:18 PM
Subject: [CANSLIM] = DCOM - B/O=20 rules

MessageOn Wedsday's edition (today) IBD = listed DCOM=20 as b/o from a double
bottom.  On Tuesday IBD weblink = said "=20 ... Dime hit 25.94 Monday, just
missing a breakout..."=20 .

As a newbie trying to learn more about charts and=20 breakouts, this seems like
a great example to check my=20 understanding.

If I am getting it right, the reason = why DCOM=20 is deemed to have b/o is
because of the following two=20 easons:

a) It closed at 26.90 having achieved an high = of=20 27.0, and that is above the
previous high of 26.80 back = in May=20 17, 2002.

b) The new high was achieved at a volume = 1,056,800=20 which is 378% up from the
day before and four times the = average=20 daily volume of 221,100

What is the exact rule for a = breakout=20 mathematically? (Lets say that I were
to program it in = say=20 Metastock?)

Base on this case I can see two rules at = least=20 (in pseudo-code):

IF today's high is greater than the = previous high (is this the all time high
or just the = rolling 52=20 week high?)
AND
IF today's volume is greater than N = times the=20 normal volume (is this some
sort of moving average of the = daily=20 volume, or just yeaterday's volume)
THEN yippe it is a=20 B/O

Is  there any "fuzziness" to the above=20 rules?

BTW, the fundamentals on DCOM also look great, = ignoring M for a moment, is
this a valid CANSLIM = candidate=20 stock?

Rgds

Victor=20 = Chang


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