Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] Bulkowski re: patterns besides C&H
Date: Wed, 9 Jan 2002 09:46:58 -0600
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Hi Ed,
I just reread Darvas' book again recently. It reminded me of the basic =
underpinnings of the technical patterns CANSLIM is looking for in a =
stock....that is, a consolidation "zone" followed by moves up into a =
higher consolidation zone. Think he calls these "boxes" but it's a very =
simple and elegant look at chart patterns like the one Tom describes, or =
any others, for that matter. Also like his simple, but powerful notion =
of "I have no reason to sell a stock that's rising." Those 2 lessons =
have value far greater than the price of the book!
Katherine
----- Original Message -----=20
From: Edward McDonough=20
To: canslim@lists.xmission.com=20
Sent: Wednesday, January 09, 2002 12:36 PM
Subject: RE: [CANSLIM] Bulkowski re: patterns besides C&H
Tom,
One of the oldest stock books out there talks about this pattern.
Nicholas Darvas
I believe it was called, " How I made $2 million in the Market."
Or "How I made $1 million in the Market."=20
It may still be in print.
Call me crazy.
Play to win!
Ed
-----Original Message-----
From: owner-canslim@lists.xmission.com =
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Tom Worley
Sent: Tuesday, January 08, 2002 7:45 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] Bulkowski re: patterns besides C&H
Hi David,
Thanks for the kind words, I hope what I post helps you and other =
members.
I am an investor, especially now that I have little time to watch =
the markets. Even when I was an active stock broker, I did very little =
short term trading, and then only when the clients wanted to, and were =
suitable. When I consider buying a stock, I always ask myself the =
question, "am I willing to own this stock for at least three months, =
even if it's not making me money?" If the answer is not a resounding YES =
(based on fundies, my projection of future earnings, chart, "M", etc.) =
then I don't buy it. That simple. Ideally for me, I want to like it =
enough to own it for a year or two.
I have actually bought very few LLUR patterns, just a personal quirk =
with me, I guess. But you don't want to buy a LLUR on a true b/o, =
because that may signal the end of the pattern. Whether investing or =
trading, the ideal is to buy as it nudges and bounces off the moving =
average line you have determined best describes the lower trend line. At =
that point it is likely to be below its 12 month high, usually just set =
a few days to a few weeks prior. What you are buying is a trend, and =
when the trend changes you must be on guard. A sharp breakout up would =
signal a change, and be cause for you to have your finger on the sell =
trigger. A break down in price can be sharp, because there is no other =
established base nearby to create support on any correction. And holders =
of long term tend to get complacent, once they start to panic, it can =
quickly turn into an avalanche of sell orders.
I must point out to members that LLUR is not a recognized or =
documented pattern. It was contributed as a concept to this group by a =
former member (James??) that ultimately left in a huff when some of his =
other ideas and practices were not as well accepted by some members (me =
particularly). But this was one that did make sense. The chart pattern =
is seen more clearly by tilting your head about 30 to 45 degrees to the =
left (depending on the angle of the trend). You then see a flat line =
base that is ultimately steadily appreciating in price.=20
Tom Worley
stkguru@netside.net
AIM: TexWorley
----- Original Message -----=20
From: david frank=20
To: canslim@lists.xmission.com=20
Sent: Tuesday, January 08, 2002 10:30 PM
Subject: Re: [CANSLIM] Bulkowski re: patterns besides C&H
tom, you sure do write with clarity. on the flat base patterns, do =
you invest for the short or long term. and the LLUR patterns, do you =
trade with the trend or wait for B/Os. and also thank you for your =
weekly list i believe everyone appreciates it!!! david
----- Original Message -----=20
From: Tom Worley=20
To: canslim@lists.xmission.com=20
Sent: Tuesday, January 08, 2002 8:57 PM
Subject: Re: [CANSLIM] Bulkowski re: patterns besides C&H
You did fine, Katherine. I would only disagree with your comment =
that it follows the 50DMA. The 50 is the one I have noticed the most =
frequently, but that may be because DGO displays it. The best bet is to =
use a charting service like BigCharts that allows for variable time =
displays with different MA lines, and try a few till you find one that =
most closely fits that particular stock.
One of the keys to the "quality" of a LLUR (after it already =
demonstrates solid CANSLIM criteria for growth, RS, EPS, etc) is the =
degree of volatility. Less is better.=20
LLUR patterns can be used for both trading and investing. For =
trading, it's critical to accurately identify the upper and lower trend =
lines as they represent your short term exit and entry points. For =
investing, with a smooth LLUR, you can pick just about any point for =
entry. Your exit point is when the LLUR pattern changes, either with a =
big break out up or down, or when a down trend crosses the lower trend =
line.
Hope this helps,
Tom Worley
stkguru@netside.net
AIM: TexWorley
----- Original Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=20
Sent: Tuesday, January 08, 2002 6:09 PM
Subject: Re: [CANSLIM] Bulkowski re: patterns besides C&H
Hi Dave,
The "Encyclopedia of Chart Patterns" is the only one on the =
shelves just now. The new book "Trading Strategies" I believe is due any =
time. I have pre-ordered it, but who knows if it'll be any good!
LLUR is a list term which stands for "Lower Left Upper Right." =
At least, so far, it's not in any TA book. Tom will answer this question =
a little differently, but I see it as a stock in a long ascent which =
hugs the 50dMA very closely in a well defined trading range. I believe =
Tom says that it lasts a year or so. WON uses a term called "ascending =
base" that is similar, but shorter lived than the LLUR. When Tom posts =
this evening, I'm sure he'll explain further.
Katherine
----- Original Message -----=20
From: J. David Stem=20
To: canslim@lists.xmission.com=20
Sent: Tuesday, January 08, 2002 5:09 PM
Subject: Re: [CANSLIM] Bulkowski re: patterns besides C&H
Katherine et al,
Which of the two Bulkowski books is best? I can't find them =
at the local=20
B&N and am going to order from Amazon.
By the way, I hate to ask, but what is LLUR? It's the one =
acronym that's=20
escaping me!
Dave
=
_________________________________________________________________
Chat with friends online, try MSN Messenger: =
http://messenger.msn.com
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-To subscribe/unsubscribe, email "majordomo@xmission.com"
-In the email body, write "subscribe canslim" or
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<STYLE></STYLE>
</HEAD>
<BODY bgColor=3D#ffffff>
<DIV>Hi Ed,</DIV>
<DIV> </DIV>
<DIV>I just reread Darvas' book again recently. It reminded me =
of the=20
basic underpinnings of the technical patterns CANSLIM is looking for in =
a=20
stock....that is, a consolidation "zone" followed by moves up into a =
higher=20
consolidation zone. Think he calls these "boxes" but it's a very simple =
and=20
elegant look at chart patterns like the one Tom describes, or any =
others, for=20
that matter. Also like his simple, but powerful notion of "I have no =
reason to=20
sell a stock that's rising." Those 2 lessons have value far greater than =
the=20
price of the book!</DIV>
<DIV> </DIV>
<DIV>Katherine</DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Demcdonough@rjfs.com =
href=3D"mailto:emcdonough@rjfs.com">Edward=20
McDonough</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Wednesday, January 09, =
2002 12:36=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> RE: [CANSLIM] =
Bulkowski re:=20
patterns besides C&H</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2>Tom,</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2>One of the oldest =
stock books out=20
there talks about this pattern.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2>Nicholas =
Darvas</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2>I believe it was =
called, " How I=20
made <SPAN class=3D600123418-09012002>$</SPAN>2 million in=20
the <SPAN class=3D600123418-09012002>M</SPAN>arket."</FONT></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2></FONT> </DIV>
<DIV><SPAN class=3D600123418-09012002><FONT face=3DArial =
color=3D#0000ff size=3D2>Or=20
"How I made $1 million in the Market." </FONT></SPAN></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2></FONT> </DIV>
<DIV><SPAN class=3D600123418-09012002><FONT face=3DArial =
color=3D#0000ff size=3D2>It=20
may still be in print.</FONT></SPAN></DIV>
<DIV> </DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2>Call me =
crazy.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2>Play to =
win!</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2>Ed</FONT></DIV>
<BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px">
<DIV class=3DOutlookMessageHeader><FONT face=3D"Times New Roman"=20
size=3D2>-----Original Message-----<BR><B>From:</B> <A=20
=
href=3D"mailto:owner-canslim@lists.xmission.com">owner-canslim@lists.xmis=
sion.com</A>=20
[mailto:owner-canslim@lists.xmission.com]<B>On Behalf Of</B> Tom=20
Worley<BR><B>Sent:</B> Tuesday, January 08, 2002 7:45 =
PM<BR><B>To:</B>=20
canslim@lists.xmission.com<BR><B>Subject:</B> Re: [CANSLIM] =
Bulkowski re:=20
patterns besides C&H<BR><BR></FONT></DIV>
<DIV><FONT face=3DArial>Hi David,</FONT></DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV><FONT face=3DArial>Thanks for the kind words, I hope what I =
post helps=20
you and other members.</FONT></DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV><FONT face=3DArial>I am an investor, especially now that I have =
little=20
time to watch the markets. Even when I was an active stock broker, I =
did=20
very little short term trading, and then only when the clients =
wanted to,=20
and were suitable. When I consider buying a stock, I always ask =
myself the=20
question, "am I willing to own this stock for at least three months, =
even if=20
it's not making me money?" If the answer is not a resounding YES =
(based on=20
fundies, my projection of future earnings, chart, "M", etc.) then I =
don't=20
buy it. That simple. Ideally for me, I want to like it enough to own =
it for=20
a year or two.</FONT></DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV><FONT face=3DArial>I have actually bought very few LLUR =
patterns, just a=20
personal quirk with me, I guess. But you don't want to buy a LLUR on =
a true=20
b/o, because that may signal the end of the pattern. Whether =
investing or=20
trading, the ideal is to buy as it nudges and bounces off the moving =
average=20
line you have determined best describes the lower trend line. At =
that point=20
it is likely to be below its 12 month high, usually just set a few =
days to a=20
few weeks prior. What you are buying is a trend, and when the trend =
changes=20
you must be on guard. A sharp breakout up would signal a change, and =
be=20
cause for you to have your finger on the sell trigger. A break down =
in price=20
can be sharp, because there is no other established base nearby to =
create=20
support on any correction. And holders of long term tend to get =
complacent,=20
once they start to panic, it can quickly turn into an avalanche of =
sell=20
orders.</FONT></DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV><FONT face=3DArial>I must point out to members that LLUR is not =
a=20
recognized or documented pattern. It was contributed as a concept to =
this=20
group by a former member (James??) that ultimately left in a huff =
when some=20
of his other ideas and practices were not as well accepted by some =
members=20
(me particularly). But this was one that did make sense. The chart =
pattern=20
is seen more clearly by tilting your head about 30 to 45 degrees to =
the left=20
(depending on the angle of the trend). You then see a flat line base =
that is=20
ultimately steadily appreciating in price. </FONT></DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV>Tom Worley<BR><A=20
href=3D"mailto:stkguru@netside.net">stkguru@netside.net</A><BR>AIM:=20
TexWorley</DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- =
</DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Dcamelot.homes@charter.net=20
href=3D"mailto:camelot.homes@charter.net">david frank</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Tuesday, January 08, =
2002 10:30=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
Bulkowski re:=20
patterns besides C&H</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial size=3D2>tom, you sure do write with =
clarity. on the=20
flat base patterns, do you invest for the short or long term. and =
the LLUR=20
patterns, do you trade with the trend or wait for B/Os. and also =
thank you=20
for your weekly list i believe everyone appreciates it!!!=20
david</FONT></DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- =
</DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Dstkguru@netside.net =
href=3D"mailto:stkguru@netside.net">Tom=20
Worley</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Tuesday, January =
08, 2002=20
8:57 PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
Bulkowski=20
re: patterns besides C&H</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial>You did fine, Katherine. I would only =
disagree=20
with your comment that it follows the 50DMA. The 50 is the =
one I=20
have noticed the most frequently, but that may be because DGO =
displays=20
it. The best bet is to use a charting service like BigCharts =
that allows=20
for variable time displays with different MA lines, and try a =
few till=20
you find one that most closely fits that particular =
stock.</FONT></DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV><FONT face=3DArial>One of the keys to the "quality" of a =
LLUR (after=20
it already demonstrates solid CANSLIM criteria for growth, RS, =
EPS, etc)=20
is the degree of volatility. Less is better. </FONT></DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV><FONT face=3DArial>LLUR patterns can be used for both =
trading and=20
investing. For trading, it's critical to accurately identify the =
upper=20
and lower trend lines as they represent your short term exit and =
entry=20
points. For investing, with a smooth LLUR, you can pick just =
about any=20
point for entry. Your exit point is when the LLUR pattern =
changes,=20
either with a big break out up or down, or when a down trend =
crosses the=20
lower trend line.</FONT></DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV><FONT face=3DArial>Hope this helps,</FONT></DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV>Tom Worley<BR><A=20
=
href=3D"mailto:stkguru@netside.net">stkguru@netside.net</A><BR>AIM:=20
TexWorley</DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: =
5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- =
</DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Dkmalm@earthlink.net=20
href=3D"mailto:kmalm@earthlink.net">Katherine Malm</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Tuesday, January =
08, 2002=20
6:09 PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
Bulkowski=20
re: patterns besides C&H</DIV>
<DIV><BR></DIV>
<DIV>Hi Dave,</DIV>
<DIV> </DIV>
<DIV>The "Encyclopedia of Chart Patterns" is the only one =
on the=20
shelves just now. The new book "Trading Strategies" I believe =
is due=20
any time. I have pre-ordered it, but who knows if it'll be any =
good!</DIV>
<DIV> </DIV>
<DIV>LLUR is a list term which stands for "Lower Left Upper =
Right." At=20
least, so far, it's not in any TA book. Tom will answer this =
question=20
a little differently, but I see it as a stock in a long ascent =
which=20
hugs the 50dMA very closely in a well defined trading range. I =
believe=20
Tom says that it lasts a year or so. WON uses a term called =
"ascending=20
base" that is similar, but shorter lived than the LLUR. When =
Tom posts=20
this evening, I'm sure he'll explain further.</DIV>
<DIV> </DIV>
<DIV>Katherine</DIV>
<BLOCKQUOTE=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: =
5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- =
</DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Djdavidstem@msn.com =
href=3D"mailto:jdavidstem@msn.com">J.=20
David Stem</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Tuesday, =
January 08, 2002=20
5:09 PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: =
[CANSLIM]=20
Bulkowski re: patterns besides C&H</DIV>
<DIV><BR></DIV>Katherine et al,<BR><BR>Which of the two =
Bulkowski=20
books is best? I can't find them at the local =
<BR>B&N and=20
am going to order from Amazon.<BR><BR>By the way, I hate to =
ask, but=20
what is LLUR? It's the one acronym that's <BR>escaping =
=
me!<BR><BR>Dave<BR><BR><BR><BR>__________________________________________=
_______________________<BR>Chat=20
with friends online, try MSN Messenger: <A=20
=
href=3D"http://messenger.msn.com">http://messenger.msn.com</A><BR><BR><BR=
>-<BR>-To=20
subscribe/unsubscribe, email "<A=20
=
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In=
=20
the email body, write "subscribe canslim" =
or<BR>-"unsubscribe=20
canslim". Do not use quotes in your=20
=
email.</BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></=
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