Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] chart reading
Date: Wed, 17 Jul 2002 09:09:22 -0500
Next Article (by Author): RE: [CANSLIM] chart reading "Kelly Short"
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This is a multi-part message in MIME format. - ------=_NextPart_000_003D_01C22D71.A4246C40 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi Kelly, I'll bet Tom is already off to work this morning, so I'll chime in here. = Short answer to your question is "yes".... A double bottom looks like a "W" with the second dip to make the bottom = a bit lower than the first. In a C&H formation, you'll often see the = price fall back a bit as it's tracing the right side of the cup, but it = is benign by comparison. In the examples you attached, you can see the = C&H fall back a bit, but obviously not as severe as the red line you = showed that would classify it as a double bottom. The biggest difference = in the 2 formations in my mind is the entry point. On double bottoms, = the pivot is $.10 above the middle peak of the base (center of the "W"), = whereas in a C&H, you would wait for the final shakeout to occur in the = handle and then look for the pivot point accordingly. That's not to say = that a double bottom won't also have a handle, but that is somewhat = rare. Katherine ----- Original Message -----=20 From: Kelly Short=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, July 17, 2002 8:55 AM Subject: RE: [CANSLIM] chart reading Tom (and group), Thanks for the link. I'm still a bit fuzzy on the difference between a = CH formation and a Doublebottom formation. I took two of the charts from = the link you provided and on the CH formation overlaid (in red line) a = Doublebottom formation. Is the formation a CH because the second dip = does not go below the first? Or is there some other method of = identifying a doublebottom formation? Kelly -----Original Message----- From: Tom Worley [mailto:stkguru@bellsouth.net] Sent: Wednesday, July 17, 2002 6:32 AM To: CANSLIM Subject: [CANSLIM] chart reading nice, quick refresher http://www.amateur-investors.com/Chart_Patterns_Article.htm only one I caught was FSTW Tom Worley stkguru@bellsouth.net AIM: TexWorley - -To subscribe/unsubscribe, email "majordomo@xmission.com" -In the email body, write "subscribe canslim" or -"unsubscribe canslim". Do not use quotes in your email. = _________________________________________________________________________= ___ For your protection, this e-mail message has been scanned for viruses. Visit us at http://www.neoris.com/ - ------=_NextPart_000_003D_01C22D71.A4246C40 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Diso-8859-1"> <META content=3D"MSHTML 6.00.2716.2200" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV>Hi Kelly,</DIV> <DIV> </DIV> <DIV>I'll bet Tom is already off to work this morning, so I'll chime in = here.=20 Short answer to your question is "yes"....</DIV> <DIV> </DIV> <DIV>A double bottom looks like a "W" with the second dip to make = the=20 bottom a bit lower than the first. In a C&H formation, you'll often = see the=20 price fall back a bit as it's tracing the right side of the cup, but it = is=20 benign by comparison. In the examples you attached, you can see the = C&H fall=20 back a bit, but obviously not as severe as the red line you showed that = would=20 classify it as a double bottom. The biggest difference in the 2 = formations in my=20 mind is the entry point. On double bottoms, the pivot is $.10 above the = middle=20 peak of the base (center of the "W"), whereas in a C&H, you would = wait for=20 the final shakeout to occur in the handle and then look for the pivot = point=20 accordingly. That's not to say that a double bottom won't also have a = handle,=20 but that is somewhat rare.</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=3Dkelly.short@neoris.com = href=3D"mailto:kelly.short@neoris.com">Kelly=20 Short</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, July 17, 2002 = 8:55=20 AM</DIV> <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> RE: [CANSLIM] chart=20 reading</DIV> <DIV><BR></DIV>Tom (and group),<BR><BR>Thanks for the link. I'm still = a bit=20 fuzzy on the difference between a CH formation and a Doublebottom = formation. I=20 took two of the charts from the link you provided and on the CH = formation=20 overlaid (in red line) a Doublebottom formation. Is the formation a CH = because=20 the second dip does not go below the first? Or is there some other = method of=20 identifying a doublebottom = formation?<BR><BR>Kelly<BR><BR>-----Original=20 Message-----<BR>From: Tom Worley = [mailto:stkguru@bellsouth.net]<BR>Sent:=20 Wednesday, July 17, 2002 6:32 AM<BR>To: CANSLIM<BR>Subject: [CANSLIM] = chart=20 reading<BR><BR><BR>nice, quick refresher<BR><BR><A=20 = href=3D"http://www.amateur-investors.com/Chart_Patterns_Article.htm">http= ://www.amateur-investors.com/Chart_Patterns_Article.htm</A><BR><BR>only=20 one I caught was FSTW<BR><BR>Tom Worley<BR><A=20 = href=3D"mailto:stkguru@bellsouth.net">stkguru@bellsouth.net</A><BR>AIM:=20 TexWorley<BR><BR><BR><BR>-<BR>-To subscribe/unsubscribe, email "<A=20 = href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In= the=20 email body, write "subscribe canslim" or<BR>-"unsubscribe = canslim". Do=20 not use quotes in your=20 = email.<BR><BR>___________________________________________________________= _________________<BR>For=20 your protection, this e-mail message has been scanned for = viruses.<BR>Visit us=20 at <A=20 href=3D"http://www.neoris.com/">http://www.neoris.com/</A><BR></BLOCKQUOT= E></BODY></HTML> - ------=_NextPart_000_003D_01C22D71.A4246C40-- - - - -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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