Re: [CANSLIM] stacking the odds in my favor-buying before the pivot point

From: "Dave Squires" <dcsquires1@home.com>
Subject: Re: [CANSLIM] stacking the odds in my favor-buying before the pivot point
Date: Fri, 21 Dec 2001 11:36:00 -0600
Next Article (by Date): Re: [CANSLIM] Industry analysis technique/tools? Was: Point of View: Why bother with fundamentals? Warren Keuffel
Previous Article (by Date): AW: [CANSLIM] stacking the odds in my favor-buying before the pivot point Andreas Himmelreich
Next in Thread: Re: [CANSLIM] stacking the odds in my favor-buying before the pivot point "Patrick Wahl"
Articles sorted by: [Date] [Author] [Subject]
The obvious point is the top of the right side of the cup or the handle
high. If you are dealing with a flat base it would be the spot where the
majority of the resistance at the base top is overcome. For a double bottom
with a handle it's the handle high. If is has no handle it's the middle of
the W. For an other "base" it's usually the spot where the major resistance
is overcome. These are obvious points because WON, et al have taught
breakout buying for many years now and the 90's were a breakout traders
utopia.

DSquires
- ----- Original Message -----
From: "Andreas Himmelreich" <judgejimmy@web.de>
To: <canslim@lists.xmission.com>
Sent: Friday, December 21, 2001 11:23 AM
Subject: AW: [CANSLIM] stacking the odds in my favor-buying before the pivot
point


> " I believe most serious IT traders are now buying before the breakout as
> it has become a very obvious point"
>
> So how do you determine this "obvious" point?
>
> > -----Ursprungliche Nachricht-----
> > Von: Dave Squires [SMTP:dcsquires1@home.com]
> > Gesendet am: Friday, December 21, 2001 5:17 PM
> > An: canslim@lists.xmission.com
> > Betreff: Re: [CANSLIM] stacking the odds in my favor-buying before the
> pivot  point
> >
> >  >>I still think that these things could be done with stop-limit orders
> for entry and therefore wouldn't require screen-sitting all day long.<<
> >
> > I agreed. I have said this many times before on this and other CS lists.
> While I am skeptical about stop limits I think stop market orders placed
> after the first 15-30 minutes will cover people who can't watch the screen
> all day or set alarms. CS requires very good timing and buying the next
day
> is often a recipe for a stop out on any normal pullback or pivot test. I
> believe most serious IT traders are now buying before the breakout as it
> has become a very obvious point. Still in a good market with quality
> leadership the handle high pivot will work fine. If you don't have
constant
> access to the market buying before the break can be dangerous because you
> don't know the volume situation and you are technically buying the top of
a
> trading range, which is a dangerous entry if a breakout does not result.
> >
> > DSquires
> >   ----- Original Message -----
> >   From: Katherine Malm
> >   To: canslim@lists.xmission.com
> >   Sent: Friday, December 21, 2001 9:07 AM
> >   Subject: Re: [CANSLIM] stacking the odds in my favor-buying before the
> pivot point
> >
> >
> >   Good question, Warren. It is at this very spot where "theory" and
> "practice" meet that the individual has to apply some reasonable
> assumptions, analytical tools, and executable steps. A fancy way of
saying,
> "I know that price has a probability of moving up when demand outstrips
> supply, and I can use chart patterns to identify that point." But....for
> each person, that "point" may be a little different. I think that's what
> Tom has been referring to in his own posts. He has a comfort with
microcaps
> and under-followed stocks in general, so he has adjusted his entries to
> match the typical behavior of these stocks. As I have become more
> comfortable with technical patterns and more confident in my own candidate
> selection process, I have modified these entries a bit. I am much more
> willing to take entries on patterns other than the traditional C&H or flat
> base near old highs. I control risk by decreasing my lot size and then
> adding to positions as the stock continues to show strength and then pulls
> back to the intermediate term trend. That's not to say I don't have to
pull
> the plug every now and then, and then possibly re-enter when the smoke
> clears. But that's about personal style in the spirit of CANSLIM and in
the
> spirit of "the balance between supply and demand." In general, I still
> think that these things could be done with stop-limit orders for entry and
> therefore wouldn't require screen-sitting all day long. I have the luxury
> of being at home all day as well, but I really don't find it interesting
to
> "watch" the market. I let my alarms tell me when/if the time is near, then
> place a market order when it's right. Again, personal style, but not a
> requirement.
> >
> >   Katherine
> >     ----- Original Message -----
> >     From: Warren Keuffel
> >     To: canslim@lists.xmission.com
> >     Sent: Friday, December 21, 2001 8:47 AM
> >     Subject: Re: [CANSLIM] stacking the odds in my favor-buying before
> the pivot point
> >
> >
> >     Katherine,
> >
> >     This is the Theory, and it is Good.  But in Practice, being able to
> >     identify the B/O and get in before it is too extended is where the
> >     rubber really meets the road.  Hence, I am starting to favor an
> earlier
> >     entry (and I believe Tom mentioned that he does this as well)
because
> >     IMHO only those glued to their screens all day long, with sophisti
> cated
> >     alarms, etc. can react quickly enough to act at the ideal entry
> point.
> >
> >     Maybe it's not as hard as I make it out to be, but I have not had
> many
> >     successes with ideal entry points, and I work from home so am seldom
> far
> >     from my computer.  How about you?  Are you able to repeatably time
> your
> >     entries optimally?
> >
> >     Warren
> >
> >     Katherine Malm wrote:
> >
> >     <snip>
> >
> >     >  (1) The idea behind waiting for a good stock to form a solid base
> and
> >     > then break out on volume is to identify that magical point at
which
> >     > Demand outstrips Supply and Price is pushed higher--essentially
the
> >     > old Supply/Demand curve from economics class.  Assuming the lion's
> >     > share of  sellers have been exhausted and the stock is one that
> people
> >     > would wish to own, the theory is that any additional demand for
the
> >     > stock will push the price further. In order for the Price to
> continue
> >     > on, the underlying fundamentals that create value in the company
> have
> >     > got to be sound. So from this point of view, waiting for the B/O
is
> >     > stacking the odds in your favor.
> >
> >     <snip>
> >
> >
> >
> >     -
> >     -To subscribe/unsubscribe, email "majordomo@xmission.com"
> >     -In the email body, write "subscribe canslim" or
> >     -"unsubscribe canslim".  Do not use quotes in your email.
> >  << Datei: ATT00004.htm >>
>
> -
> -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.
Go to Jeff Salisbury LWGate Home Page.