RE: [CANSLIM] MFA

From: "webmaster" <webmaster@cwhcharts.com>
Subject: RE: [CANSLIM] MFA
Date: Sun, 30 Dec 2001 23:19:24 -1000
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The chart of MFA could be interpreted as a cup with the beginning of a
handle of sorts.  However it has several weaknesses that make it less than
ideal.  First of all the pivot point, or top of the right side of the cup
usually forms slightly below the height of the peak at the left side of the
cup, ideally 5-10% below.  In this chart, the high point in the left side is
at $9.05, so ideally the stock should have run into resistance at or below
$9.00 (instead of doing so up at $9.40) and pulled back on light volume to
form the handle.  A handle that forms above the prior high does not have
nearly the chances of success as one that forms just below the prior peak.
However a pivot point slightly above the peak at the left side might be
acceptable if everything else is perfect.  Another quality that this chart
lacks is a tight price pattern in the handle.  So far this handle looks
"wide and loose" as its intraday price movement has been very wide.  It
would need to "tighten up" significantly from here before breaking out to
increase its chances of success.  (An example of tight price action occurred
at the bottom of this chart's cup between early/mid November and early/mid
December).  Also the volume needs to "dry up" in the handlethis chart,
however, has exhibited above average volume in the first 2 days of the
apparent 3 day handle.  When there are many ideal patterns forming, why risk
it and choose one with flaws?

webmaster
cwhCharts.com

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<DIV><FONT face=3DArial><FONT color=3D#0000ff><FONT size=3D2><SPAN=20
class=3D636023404-31122001>The chart of MFA could be interpreted as a =
cup with the=20
beginning of a handle of sorts.&nbsp; However it has several weaknesses =
that=20
make it less than ideal.&nbsp; First of all the pivot point, or top of =
the right=20
side of the cup&nbsp;usual</SPAN><SPAN=20
class=3D636023404-31122001></FONT></FONT></FONT><FONT color=3D#0000ff =
face=3DArial=20
size=3D2>ly forms slightly below the height of the peak at the left side =
of the=20
cup, ideally 5-10% below.&nbsp; In this chart, the high point in the =
left side=20
is at $9.05, so ideally the stock should have run into=20
resistance&nbsp;at&nbsp;or below $9.00 (instead of doing so up at $9.40) =
and=20
pulled back on light volume to form the handle.&nbsp; A handle that =
forms above=20
the prior high does not have nearly the chances of success as one that =
forms=20
just below the prior peak.&nbsp; However a pivot point slightly above =
the peak=20
at the left side might be acceptable&nbsp;if everything else is =
perfect.&nbsp;=20
Another quality that this chart lacks is a tight price pattern in the=20
handle.&nbsp; So far this handle looks "wide and loose" as its intraday =
price=20
movement has been very wide.&nbsp; It would need to "tighten up" =
significantly=20
from here before breaking out to increase its chances of success.&nbsp; =
(An=20
example of tight price action occurred at the bottom of this chart's cup =
between=20
early/mid November and early/mid December).&nbsp; Also the volume needs =
to "dry=20
up" in the handle<SPAN class=3D730411409-31122001>t</SPAN>his chart<SPAN =

class=3D730411409-31122001>, however, </SPAN>has exhibited above average =
volume in=20
the first 2 days of the apparent 3 day handle.&nbsp; When there are many =
ideal=20
patterns forming, why risk it and choose one with =
flaws?<BR></FONT></SPAN><SPAN=20
class=3D636023404-31122001><FONT color=3D#0000ff><FONT =
face=3DArial><SPAN=20
class=3D730411409-31122001></SPAN></FONT></FONT></SPAN></DIV>
<DIV><SPAN class=3D636023404-31122001><FONT size=3D2><FONT =
color=3D#0000ff><FONT=20
face=3DArial><SPAN=20
class=3D730411409-31122001>webmaster</SPAN></FONT></FONT></FONT></SPAN></=
DIV>
<DIV><SPAN class=3D636023404-31122001><FONT size=3D2><FONT =
color=3D#0000ff><FONT=20
face=3DArial><SPAN=20
class=3D730411409-31122001>cwhCharts.com&nbsp;</SPAN></FONT></FONT></FONT=
></SPAN></DIV></BODY></HTML>

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