RE: [CANSLIM] breakouts - return to base


From: "John Adair" <xjadair@brightok.net>
Subject: RE: [CANSLIM] breakouts - return to base
Date: Mon, 10 Dec 2001 20:33:37 -0600

Previous Article (by Date): Re: [CANSLIM] breakouts - return to base "Tom Worley"
Articles sorted by: [Date] [Author] [Subject]


This is a multi-part message in MIME format.

- ------=_NextPart_000_0045_01C181B9.F2185BA0
Content-Type: text/plain;
	charset="iso-8859-1"
Content-Transfer-Encoding: 7bit

Thanks to Katherine and Tom for their unbelievable effort to help the rest
of us.  You two make this board one of the best and worth all the time I
spend  reading it.

- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Chris Dempsey
Sent: Monday, December 10, 2001 12:22 PM
To: canslim@lists.xmission.com
Subject: RE: [CANSLIM] breakouts - return to base

Katherine, David, and All others interested

I remember reading that WON says 40% of breakouts return to the base. I
believe it is more than that. I'm not sure that it is 75%, but it might be.
For that reason WON states in his book you must take some profits when they
hit 20%. On one of the IBD tapes they state to profits in 1/2 of positions
reaching 25%. These are because of the high rate of pull backs. If you don't
do this then you are forced to use the rule, don't let a winner turn into a
loser.

SCUR appears to be an example of a stock returning/nearly returning to the
base.
- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of
camelot.homes@charter.net
Sent: Monday, December 10, 2001 9:49 AM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] low volume breakouts
hi katherine , thank you so much for this very good information! when
bulkowski states that stocks retrace back to the b/o piont 75% of the time
is he talking about high or low volume breakouts? and where is the best
place to get a copy of his book? david
- ----- Original Message -----
From: Katherine Malm <mailto:kmalm@earthlink.net>
To: canslim@lists.xmission.com <mailto:canslim@lists.xmission.com>
Sent: Monday, December 10, 2001 5:10 AM
Subject: Re: [CANSLIM] low volume breakouts

Hi David,

The question you ask is a good one. Demanding controlled study proof of a
guideline like this is important, as it makes an underlying assumption about
technical patterns which may or may not trigger a buy. I pulled out my
"Encyclopedia of Chart Patterns" by Thomas Bulkowski to answer this
question. In this book, the author does statistical studies on chart
formation and there is an entire chapter devoted to the C&H. (pp.135-152).

Before I state the author's conclusions, a general overview of WON's theory
as to why volume should be high on the breakout. That is, you are looking
for the point at which demand so outweighs supply that the price moves up
and onward. In my own personal experience, low volume breakouts seem to fall
back more often than not. But these are "odds" not specifics. SONC is a good
example from recent discussions on the list. Take a look at the daily chart
from 10/3 to now. You can see that SONC tried very hard on several days to
break out of its consolidation, but fell back and eventually gapped down.
The low volume B/O's don't always mean the stock will fail, just that it's
not yet ready to move on. I like to have the odds in my favor, so I'm always
willing to wait until there's proof of the pudding.

Back to Bulkowski. In the C&H formation, the failure rate is 26%. If you
wait for an upside breakout, the failure rate falls to 10%. Stocks retrace
back to the B/O point 75% of the time (average time 12 days). Waiting for
the throwback increases the success rate another 1%. Typical B/O volume is
180% above the prior day and stays high for the following week.
Interestingly, he says removing the high volume B/O criteria does hurt
performance, but only minimally. This is an excellent chapter on C&H and,
based on the statistical evidence,  the author makes other conclusions that
lead to particular trading tactics. There are several additional criteria
that WON would require of a stock forming a C&H and then breaking out, such
as rising RS, high group RS, underlying fundamental characteristics, etc.
that are not included in the author's study. My own conclusions,
anecdotally, are that if these other criteria are met AND you get a high
volume B/O, the odds are in your favor. (No statistical studies to back that
up, however!)

Katherine


- ----- Original Message -----
From: camelot.homes@charter.net <mailto:camelot.homes@charter.net>
To: canslim@xmission.com <mailto:canslim@xmission.com>
Sent: Sunday, December 09, 2001 5:44 PM
Subject: [CANSLIM] low volume breakouts

how often does a low volume breakout succeed  past the pivot point versus  a
high volume breakout past the pivot point? david

- ------=_NextPart_000_0045_01C181B9.F2185BA0
Content-Type: text/html;
	charset="iso-8859-1"
Content-Transfer-Encoding: quoted-printable

<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<html xmlns:v=3D"urn:schemas-microsoft-com:vml" =
xmlns:o=3D"urn:schemas-microsoft-com:office:office" =
xmlns:w=3D"urn:schemas-microsoft-com:office:word" =
xmlns=3D"http://www.w3.org/TR/REC-html40">

<head>
<meta http-equiv=3DContent-Type content=3D"text/html; =
charset=3Diso-8859-1">
<meta name=3DProgId content=3DWord.Document>
<meta name=3DGenerator content=3D"Microsoft Word 9">
<meta name=3DOriginator content=3D"Microsoft Word 9">
<link rel=3DFile-List href=3D"cid:filelist.xml@01C181B9.6A431A80">
<!--[if gte mso 9]><xml>
 <o:OfficeDocumentSettings>
  <o:DoNotRelyOnCSS/>
 </o:OfficeDocumentSettings>
</xml><![endif]--><!--[if gte mso 9]><xml>
 <w:WordDocument>
  <w:Zoom>0</w:Zoom>
  <w:DocumentKind>DocumentEmail</w:DocumentKind>
  <w:EnvelopeVis/>
  <w:Compatibility>
   <w:ForgetLastTabAlignment/>
   <w:DoNotUseHTMLParagraphAutoSpacing/>
  </w:Compatibility>
 </w:WordDocument>
</xml><![endif]-->
<style>
<!--
 /* Font Definitions */
@font-face
	{font-family:Tahoma;
	panose-1:2 11 6 4 3 5 4 4 2 4;
	mso-font-charset:0;
	mso-generic-font-family:swiss;
	mso-font-pitch:variable;
	mso-font-signature:16792199 0 0 0 65791 0;}
 /* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
	{mso-style-parent:"";
	margin:0in;
	margin-bottom:.0001pt;
	mso-pagination:widow-orphan;
	font-size:12.0pt;
	font-family:"Times New Roman";
	mso-fareast-font-family:"Times New Roman";}
a:link, span.MsoHyperlink
	{color:blue;
	text-decoration:underline;
	text-underline:single;}
a:visited, span.MsoHyperlinkFollowed
	{color:blue;
	text-decoration:underline;
	text-underline:single;}
p.MsoAutoSig, li.MsoAutoSig, div.MsoAutoSig
	{margin:0in;
	margin-bottom:.0001pt;
	mso-pagination:widow-orphan;
	font-size:12.0pt;
	font-family:"Times New Roman";
	mso-fareast-font-family:"Times New Roman";}
span.EmailStyle17
	{mso-style-type:personal-reply;
	mso-ansi-font-size:10.0pt;
	mso-ascii-font-family:Arial;
	mso-hansi-font-family:Arial;
	mso-bidi-font-family:Arial;
	color:navy;}
@page Section1
	{size:8.5in 11.0in;
	margin:1.0in 1.25in 1.0in 1.25in;
	mso-header-margin:.5in;
	mso-footer-margin:.5in;
	mso-paper-source:0;}
div.Section1
	{page:Section1;}
- -->
</style>
<!--[if gte mso 9]><xml>
 <o:shapedefaults v:ext=3D"edit" spidmax=3D"1027"/>
</xml><![endif]--><!--[if gte mso 9]><xml>
 <o:shapelayout v:ext=3D"edit">
  <o:idmap v:ext=3D"edit" data=3D"1"/>
 </o:shapelayout></xml><![endif]-->
</head>

<body bgcolor=3Dwhite lang=3DEN-US link=3Dblue vlink=3Dblue =
style=3D'tab-interval:.5in'>

<div class=3DSection1>

<p class=3DMsoNormal><span class=3DEmailStyle17><font size=3D2 =
color=3Dnavy face=3DArial><span
style=3D'font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:Arial'>Th=
anks to
Katherine and Tom for their unbelievable effort to help the rest of =
us.<span
style=3D"mso-spacerun: yes">&nbsp; </span>You two make this board one of =
the best
and worth all the time I spend<span style=3D"mso-spacerun: yes">&nbsp;
</span>reading it.<o:p></o:p></span></font></span></p>

<p class=3DMsoNormal><span class=3DEmailStyle17><font size=3D2 =
color=3Dnavy face=3DArial><span
style=3D'font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:Arial'><!=
[if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></span></font></span></p>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
color=3Dblack
face=3DTahoma><span =
style=3D'font-size:10.0pt;font-family:Tahoma;color:black'>-----Original
Message-----<br>
<b><span style=3D'font-weight:bold'>From:</span></b>
owner-canslim@lists.xmission.com =
[mailto:owner-canslim@lists.xmission.com]<b><span
style=3D'font-weight:bold'>On Behalf Of </span></b>Chris Dempsey<br>
<b><span style=3D'font-weight:bold'>Sent:</span></b> Monday, December =
10, 2001
12:22 PM<br>
<b><span style=3D'font-weight:bold'>To:</span></b> =
canslim@lists.xmission.com<br>
<b><span style=3D'font-weight:bold'>Subject:</span></b> RE: [CANSLIM] =
breakouts -
return to base</span></font></p>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
color=3Dblue face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;color:blue'>Katherine, =
David, and All
others interested</span></font><font color=3Dblack><span =
style=3D'color:black;
mso-color-alt:windowtext'><o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
color=3Dblack
face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt;color:black'>&nbsp;</span></font><font
color=3Dblack><span =
style=3D'color:black;mso-color-alt:windowtext'><o:p></o:p></span></font><=
/p>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
color=3Dblue face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;color:blue'>I remember =
reading that
WON says 40% of breakouts return to the base. I believe it is more than =
that.
I'm not sure that it is 75%, but it might be. For that reason WON states =
in his
book you must take some profits when they hit 20%. On one of the IBD =
tapes they
state to profits in 1/2 of positions reaching 25%. These are because of =
the
high rate of pull backs. If you don't do this then you are forced to use =
the
rule, don't let a winner turn into a loser. </span></font><font =
color=3Dblack><span
style=3D'color:black;mso-color-alt:windowtext'><o:p></o:p></span></font><=
/p>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
color=3Dblack
face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt;color:black'>&nbsp;</span></font><font
color=3Dblack><span =
style=3D'color:black;mso-color-alt:windowtext'><o:p></o:p></span></font><=
/p>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
color=3Dblue face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;color:blue'>SCUR appears to =
be an
example of a stock returning/nearly returning&nbsp;to the =
base.</span></font><font
color=3Dblack><span =
style=3D'color:black;mso-color-alt:windowtext'><o:p></o:p></span></font><=
/p>

<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:auto;margin-bottom:12.0pt;
margin-left:1.0in'><font size=3D2 color=3Dblack face=3DTahoma><span =
style=3D'font-size:
10.0pt;font-family:Tahoma;color:black'>-----Original Message-----<br>
<b><span style=3D'font-weight:bold'>From:</span></b>
owner-canslim@lists.xmission.com =
[mailto:owner-canslim@lists.xmission.com]<b><span
style=3D'font-weight:bold'>On Behalf Of =
</span></b>camelot.homes@charter.net<br>
<b><span style=3D'font-weight:bold'>Sent:</span></b> Monday, December =
10, 2001
9:49 AM<br>
<b><span style=3D'font-weight:bold'>To:</span></b> =
canslim@lists.xmission.com<br>
<b><span style=3D'font-weight:bold'>Subject:</span></b> Re: [CANSLIM] =
low volume
breakouts</span></font><font color=3Dblack><span =
style=3D'color:black;mso-color-alt:
windowtext'><o:p></o:p></span></font></p>

<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
margin-left:1.0in'><font size=3D2 color=3Dblack face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:black'>hi katherine , thank you so much =
for this
very good information! when bulkowski states that stocks retrace back to =
the
b/o piont 75% of the time is he talking about high or low volume =
breakouts? and
where is the best place to get a copy of his book? =
david</span></font><font
color=3Dblack><span =
style=3D'color:black;mso-color-alt:windowtext'><o:p></o:p></span></font><=
/p>

<div style=3D'border:none;border-left:solid black 1.5pt;padding:0in 0in =
0in 4.0pt'>

<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
margin-left:75.75pt;border:none;mso-border-left-alt:solid black 1.5pt;
padding:0in;mso-padding-alt:0in 0in 0in 4.0pt'><font size=3D2 =
color=3Dblack
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:black'>-----
Original Message ----- </span></font><font size=3D2 color=3Dblack =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;color:black;mso-color-alt:win=
dowtext'><o:p></o:p></span></font></p>

<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
margin-left:75.75pt;background:#E4E4E4;border:none;mso-border-left-alt:so=
lid black 1.5pt;
padding:0in;mso-padding-alt:0in 0in 0in 4.0pt'><b><font size=3D2 =
color=3Dblack
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:black;
font-weight:bold'>

<div style=3D'font-color:black'>From:</span></font></b><font size=3D2 =
color=3Dblack
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:black'> <a
href=3D"mailto:kmalm@earthlink.net" =
title=3D"kmalm@earthlink.net">Katherine Malm</a>
</span></font></div>

<font size=3D2 color=3Dblack face=3DArial><span =
style=3D'font-size:10.0pt;font-family:
Arial;color:black;mso-color-alt:windowtext'><o:p></o:p></span></font></p>=


<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
margin-left:75.75pt;border:none;mso-border-left-alt:solid black 1.5pt;
padding:0in;mso-padding-alt:0in 0in 0in 4.0pt'><b><font size=3D2 =
color=3Dblack
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:black;
font-weight:bold'>To:</span></font></b><font size=3D2 color=3Dblack =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;color:black'> <a
href=3D"mailto:canslim@lists.xmission.com" =
title=3D"canslim@lists.xmission.com">canslim@lists.xmission.com</a>
</span></font><font size=3D2 color=3Dblack face=3DArial><span =
style=3D'font-size:10.0pt;
font-family:Arial;color:black;mso-color-alt:windowtext'><o:p></o:p></span=
></font></p>

<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
margin-left:75.75pt;border:none;mso-border-left-alt:solid black 1.5pt;
padding:0in;mso-padding-alt:0in 0in 0in 4.0pt'><b><font size=3D2 =
color=3Dblack
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:black;
font-weight:bold'>Sent:</span></font></b><font size=3D2 color=3Dblack =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;color:black'> Monday, =
December 10,
2001 5:10 AM</span></font><font size=3D2 color=3Dblack =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;color:black;mso-color-alt:win=
dowtext'><o:p></o:p></span></font></p>

<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
margin-left:75.75pt;border:none;mso-border-left-alt:solid black 1.5pt;
padding:0in;mso-padding-alt:0in 0in 0in 4.0pt'><b><font size=3D2 =
color=3Dblack
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:black;
font-weight:bold'>Subject:</span></font></b><font size=3D2 color=3Dblack
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:black'> Re:
[CANSLIM] low volume breakouts</span></font><font size=3D2 color=3Dblack
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:black;
mso-color-alt:windowtext'><o:p></o:p></span></font></p>

<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
margin-left:75.75pt;border:none;mso-border-left-alt:solid black 1.5pt;
padding:0in;mso-padding-alt:0in 0in 0in 4.0pt'><font size=3D3 =
color=3Dblack
face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt;color:black'><![if =
!supportEmptyParas]>&nbsp;<![endif]></span></font><font
color=3Dblack><span =
style=3D'color:black;mso-color-alt:windowtext'><o:p></o:p></span></font><=
/p>

<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
margin-left:75.75pt;border:none;mso-border-left-alt:solid black 1.5pt;
padding:0in;mso-padding-alt:0in 0in 0in 4.0pt'><font size=3D2 =
color=3Dblack
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:black'>Hi
David,</span></font><font color=3Dblack><span =
style=3D'color:black;mso-color-alt:
windowtext'><o:p></o:p></span></font></p>

<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
margin-left:75.75pt;border:none;mso-border-left-alt:solid black 1.5pt;
padding:0in;mso-padding-alt:0in 0in 0in 4.0pt'><font size=3D3 =
color=3Dblack
face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt;color:black'>&nbsp;</span></font><font
color=3Dblack><span =
style=3D'color:black;mso-color-alt:windowtext'><o:p></o:p></span></font><=
/p>

<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
margin-left:75.75pt;border:none;mso-border-left-alt:solid black 1.5pt;
padding:0in;mso-padding-alt:0in 0in 0in 4.0pt'><font size=3D2 =
color=3Dblack
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:black'>The
question you ask is a good one. Demanding controlled study proof of a =
guideline
like this is important, as it makes an underlying assumption about =
technical
patterns which may or may not trigger a buy. I pulled out my =
&quot;Encyclopedia
of Chart Patterns&quot; by Thomas Bulkowski to answer this question. In =
this
book, the author does statistical studies on chart formation and there =
is an
entire chapter devoted to the C&amp;H. (pp.135-152).</span></font><font
color=3Dblack><span =
style=3D'color:black;mso-color-alt:windowtext'><o:p></o:p></span></font><=
/p>

<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
margin-left:75.75pt;border:none;mso-border-left-alt:solid black 1.5pt;
padding:0in;mso-padding-alt:0in 0in 0in 4.0pt'><font size=3D3 =
color=3Dblack
face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt;color:black'>&nbsp;</span></font><font
color=3Dblack><span =
style=3D'color:black;mso-color-alt:windowtext'><o:p></o:p></span></font><=
/p>

<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
margin-left:75.75pt;border:none;mso-border-left-alt:solid black 1.5pt;
padding:0in;mso-padding-alt:0in 0in 0in 4.0pt'><font size=3D2 =
color=3Dblack
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:black'>Before
I state the author's conclusions, a general overview of WON's theory as =
to why
volume should be high on the breakout. That is, you are looking for the =
point
at which demand so outweighs supply that the price moves up and onward. =
In my
own personal experience, low volume breakouts seem to fall back more =
often than
not. But these are &quot;odds&quot; not specifics. SONC is&nbsp;a good =
example
from recent discussions on the list. Take a look at the daily chart from =
10/3
to now. You can see that SONC tried very hard on several days to break =
out of
its consolidation, but fell back and eventually gapped down. The low =
volume
B/O's don't always mean the stock will fail, just that it's not yet =
ready to
move on. I like to have the odds in my favor, so I'm always willing to =
wait
until there's proof of the pudding.</span></font><font =
color=3Dblack><span
style=3D'color:black;mso-color-alt:windowtext'><o:p></o:p></span></font><=
/p>

<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
margin-left:75.75pt;border:none;mso-border-left-alt:solid black 1.5pt;
padding:0in;mso-padding-alt:0in 0in 0in 4.0pt'><font size=3D3 =
color=3Dblack
face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt;color:black'>&nbsp;</span></font><font
color=3Dblack><span =
style=3D'color:black;mso-color-alt:windowtext'><o:p></o:p></span></font><=
/p>

<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
margin-left:75.75pt;border:none;mso-border-left-alt:solid black 1.5pt;
padding:0in;mso-padding-alt:0in 0in 0in 4.0pt'><font size=3D2 =
color=3Dblack
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:black'>Back to
Bulkowski. In the C&amp;H formation, the failure rate is 26%. If you =
wait for
an upside breakout, the failure rate falls to 10%. Stocks retrace back =
to the
B/O point 75% of the time (average time 12 days). Waiting for the =
throwback
increases the success rate another 1%. Typical B/O volume is 180% above =
the
prior day and stays high for the following week. Interestingly, he says
removing the high volume B/O criteria does hurt performance, but only
minimally. This is an excellent chapter on C&amp;H and, based on the
statistical evidence, &nbsp;the author makes other conclusions that lead =
to
particular trading tactics. There are several additional criteria that =
WON
would require of a stock forming a C&amp;H and then breaking out, such =
as
rising RS, high group RS, underlying fundamental characteristics, etc. =
that are
not included in the author's study. My own conclusions, anecdotally, are =
that
if these other criteria are met AND you get a high volume B/O, the odds =
are in
your favor. (No statistical studies to back that up, =
however!)</span></font><font
color=3Dblack><span =
style=3D'color:black;mso-color-alt:windowtext'><o:p></o:p></span></font><=
/p>

<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
margin-left:75.75pt;border:none;mso-border-left-alt:solid black 1.5pt;
padding:0in;mso-padding-alt:0in 0in 0in 4.0pt'><font size=3D3 =
color=3Dblack
face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt;color:black'>&nbsp;</span></font><font
color=3Dblack><span =
style=3D'color:black;mso-color-alt:windowtext'><o:p></o:p></span></font><=
/p>

<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
margin-left:75.75pt;border:none;mso-border-left-alt:solid black 1.5pt;
padding:0in;mso-padding-alt:0in 0in 0in 4.0pt'><font size=3D2 =
color=3Dblack
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:black'>Katherine</span>=
</font><font
color=3Dblack><span =
style=3D'color:black;mso-color-alt:windowtext'><o:p></o:p></span></font><=
/p>

<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
margin-left:75.75pt;border:none;mso-border-left-alt:solid black 1.5pt;
padding:0in;mso-padding-alt:0in 0in 0in 4.0pt'><font size=3D3 =
color=3Dblack
face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt;color:black'>&nbsp;</span></font><font
color=3Dblack><span =
style=3D'color:black;mso-color-alt:windowtext'><o:p></o:p></span></font><=
/p>

<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
margin-left:75.75pt;border:none;mso-border-left-alt:solid black 1.5pt;
padding:0in;mso-padding-alt:0in 0in 0in 4.0pt'><font size=3D3 =
color=3Dblack
face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt;color:black'>&nbsp;</span></font><font
color=3Dblack><span =
style=3D'color:black;mso-color-alt:windowtext'><o:p></o:p></span></font><=
/p>

<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
margin-left:75.75pt;border:none;mso-border-left-alt:solid black 1.5pt;
padding:0in;mso-padding-alt:0in 0in 0in 4.0pt'><font size=3D3 =
color=3Dblack
face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt;color:black'>-----
Original Message ----- </span></font><font color=3Dblack><span =
style=3D'color:black;
mso-color-alt:windowtext'><o:p></o:p></span></font></p>

</div>

<div style=3D'border:none;border-left:solid black 1.5pt;padding:0in 0in =
0in 4.0pt;
background:#E4E4E4'>

<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
margin-left:79.5pt;border:none;mso-border-left-alt:solid black 1.5pt;
padding:0in;mso-padding-alt:0in 0in 0in 4.0pt'><b><font size=3D2 =
color=3Dblack
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:black;
font-weight:bold'>

<div style=3D'font-color:black'>From:</span></font></b><font size=3D2 =
color=3Dblack
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:black'> <a
href=3D"mailto:camelot.homes@charter.net" =
title=3D"camelot.homes@charter.net">camelot.homes@charter.net</a>
</span></font></div>

<font size=3D2 color=3Dblack face=3DArial><span =
style=3D'font-size:10.0pt;font-family:
Arial;color:black;mso-color-alt:windowtext'><o:p></o:p></span></font></p>=


<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
margin-left:79.5pt;background:white;mso-shading:transparent;border:none;
mso-border-left-alt:solid black 1.5pt;padding:0in;mso-padding-alt:0in =
0in 0in 4.0pt'><b><font
size=3D2 color=3Dblack face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;
color:black;font-weight:bold'>To:</span></font></b><font size=3D2 =
color=3Dblack
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:black'> <a
href=3D"mailto:canslim@xmission.com" =
title=3D"canslim@xmission.com">canslim@xmission.com</a>
</span></font><font size=3D2 color=3Dblack face=3DArial><span =
style=3D'font-size:10.0pt;
font-family:Arial;color:black;mso-color-alt:windowtext'><o:p></o:p></span=
></font></p>

<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
margin-left:79.5pt;background:white;mso-shading:transparent;border:none;
mso-border-left-alt:solid black 1.5pt;padding:0in;mso-padding-alt:0in =
0in 0in 4.0pt'><b><font
size=3D2 color=3Dblack face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;
color:black;font-weight:bold'>Sent:</span></font></b><font size=3D2 =
color=3Dblack
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:black'>
Sunday, December 09, 2001 5:44 PM</span></font><font size=3D2 =
color=3Dblack
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:black;
mso-color-alt:windowtext'><o:p></o:p></span></font></p>

<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
margin-left:79.5pt;background:white;mso-shading:transparent;border:none;
mso-border-left-alt:solid black 1.5pt;padding:0in;mso-padding-alt:0in =
0in 0in 4.0pt'><b><font
size=3D2 color=3Dblack face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;
color:black;font-weight:bold'>Subject:</span></font></b><font size=3D2
color=3Dblack face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;
color:black'> [CANSLIM] low volume breakouts</span></font><font size=3D2
color=3Dblack face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;
color:black;mso-color-alt:windowtext'><o:p></o:p></span></font></p>

<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
margin-left:79.5pt;background:white;mso-shading:transparent;border:none;
mso-border-left-alt:solid black 1.5pt;padding:0in;mso-padding-alt:0in =
0in 0in 4.0pt'><font
size=3D3 color=3Dblack face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt;
color:black'><![if =
!supportEmptyParas]>&nbsp;<![endif]></span></font><font
color=3Dblack><span =
style=3D'color:black;mso-color-alt:windowtext'><o:p></o:p></span></font><=
/p>

<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
margin-left:79.5pt;background:white;mso-shading:transparent;border:none;
mso-border-left-alt:solid black 1.5pt;padding:0in;mso-padding-alt:0in =
0in 0in 4.0pt'><font
size=3D2 color=3Dblack face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;
color:black'>how often does a low volume breakout succeed&nbsp; past the =
pivot
point versus&nbsp; a high volume breakout past the pivot point? =
david</span></font><font
color=3Dblack><span =
style=3D'color:black;mso-color-alt:windowtext'><o:p></o:p></span></font><=
/p>

</div>

</div>

</body>

</html>

- ------=_NextPart_000_0045_01C181B9.F2185BA0--


- -
- -To subscribe/unsubscribe, email "majordomo@xmission.com"
- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim".  Do not use quotes in your email.

Previous Article (by Date): Re: [CANSLIM] breakouts - return to base "Tom Worley"
Articles sorted by: [Date] [Author] [Subject]


Go to Jeff Salisbury LWGate Home Page.