Re: [CANSLIM] sweet chart

From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] sweet chart
Date: Thu, 11 Jul 2002 23:00:34 -0400

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As I have learned it, the trick to "catching" a LLUR, once found, is to
recognize that if you tilt your head about 30% to the left, the chart
appears to be a flat line base. This is what you are buying into, a flat
long term base. The ideal is that it is already 12 months old as such a
base, and the theory is that it will continue this pattern indefinitely so
long as it is not disrupted by "events".

Stepping back a little, studying the chart, and doing some analysis, you
should be able to find a moving day average that closely parallels the trend
and volatility of the chart. Oftentimes, the 50dma appears to be valid for
this, but you should check the 10 and 20 dma as well, and possibly several
others. What you are searching for is the dma line that best parallels the
overall trend line of the chart, and also marks the lower end of any
downtrend. For short term traders, they will want to enter a LLUR just when
it trends up from this "ideal" dma line, and exit when it reaches the upper
end of its trading range.

For the longer term investor, this is also the "ideal" entry point. But if
you are planning on holding for a year or so, it becomes less important
where you enter, nor how much of the move you may have already missed. What
you are buying is the overall trend, and the potential it may continue for a
year or two.

The best LLUR is one that trades with a tight range, very little volatility.

Any variation from a LLUR pattern is a signal to exit, or at least be ready.
This includes both a sharp up, or down, price change.  It would also include
a measurable change in volume that continues for more than a few days. If a
LLUR does begin to build a more conventional base, that is, a true
horizontal line, that usually marks a change in LLUR pattern and should be
avoided, at least until either a new CANSLIIM pattern has developed, or the
LLUR pattern has clearly resumed.

NOTE: LLUR is not an "approved" CANSLIM pattern, but it is one that I have
seen work long term so long as you are first applying much (preferably all)
of the basic 7 elements.

- ----- Original Message -----
From: <Davellil5@aol.com>
To: <canslim@lists.xmission.com>
Sent: Thursday, July 11, 2002 9:44 AM
Subject: Re: [CANSLIM] sweet chart


Tom, I would like to understand better the criteria for buying an LLUR.

Do you wait for a secondary, tertiary, etc. base to form along the rising
wave of the LLUR, before buying?  Or, do you have some other criterion for
buying an LLUR?
And what criteria are there to avoid an LLUR that's about to peak out and
collapse?

To me, an LLUR is a stock whose tendency to rise I failed to catch earlier
in
time -- maybe because it escaped notice or indications of momentum weren't
too definite then.  Either way, I've declined to chase such stocks.  But
many
of them continue rising, so why bypass them automatically?

Others in our group may also have some of the same questions in mind.  Any
comments would be appreciated.

Dave

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