Go to Jeff Salisbury LWGate Home Page.From: <camelot.homes@charter.net>
Subject: Re: [CANSLIM] Length of Bases
Date: Sat, 15 Dec 2001 20:35:03 -0600
Next Article (by Date): RE: [CANSLIM] Re:bzh & chbs "John Adair"
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check out monday's IBD under NASDAQ the real most active-has a byline on BREL-that it shot free out of a seven-week base. david - ----- Original Message ----- From: "esetser" <esetser@covad.net> To: <canslim@xmission.com> Sent: Saturday, December 15, 2001 8:26 PM Subject: [CANSLIM] Length of Bases > Here is some further data I found on the length of base subject. In > HTMMIS, on page 162, in Search with Cup-with-a-Handle Price Patterns, WON > goes on to define a CUP as a 7 to 65 week pattern. The handle is talked > about later and doesn't seem to bring up the total time, just usually 1 to > 2 weeks or more for the handle. > > However, given the discussion, I decided maybe a quick peak at the 26 > lesson course to see if it is more specific was a good idea. Okay, lesson > #9 discusses patterns, and there is an illustrated cup with handle base > they discuss. Oh-oh, WON states that the base requires at least 7 to 8 > weeks from point A to point E, where E is the breakout point. I guess this > clarifies it better than HTMMIS as it is very specific. NOte that Point C > was the end of the cup and high of the handle. I'll copy the exact text > and figure below: > > "...A proper ''cup with handle'' must take at least seven or eight weeks to > form (from Point A to Point E). Otherwise, it may be unsound and fail > after its breakout. Some bases may actually be three, six or as many as 15 > months in duration. Most decline 20% to 30% from their absolute peak to > the low of the cup (from A to B). Handles can be a short one or two weeks > or a number of weeks longer and need to drift downward along their lows or > have a shakeout (break below a prior week's low in the handle). This > serves the purpose of getting a needed pullback or price correction out of > the way. Proper handles rarely pull back in price more than 10% or 15% and > will usually show either a marked dry- up in volume near their lows, which > means there is no more selling coming into the stock, or they will have > several tight areas where the price varies only a tiny amount and for > several weeks may close virtually unchanged in price. This is a > constructive signal. " > > - ---------------------------------------------------------------------------- - ---- > > - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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