Go to Jeff Salisbury LWGate Home Page.From: "David Taggart" <dctag@mavericktrading.com>
Subject: [CANSLIM] LLUR
Date: Wed, 17 Jul 2002 09:10:21 -0600
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IMHO the main thing to watch on trades based on patterns like LLUR is
position sizing and your stop. Whenever I see a strong trend that is not
offering a good consolidation of some sort (cup/handle, flat base, etc) I
put out a smalller position and use a tighter stop. Also until I have some
cushion I dont add to it. Another thing I do is look at the intraday charts
and look for a good consolidation on the 30,60, or 120 min chart for my
stop. Of course if you are strict CANSLIM your stop is based solely off of
a % so none of this matters :-)
David Taggart
-----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine Malm
Sent: Wednesday, July 17, 2002 8:09 AM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] chart reading
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 -----
From: Kelly Short
To: canslim@lists.xmission.com
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
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<BODY bgColor=3D#ffffff>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN =
class=3D697410315-17072002>IMHO=20
the main thing to watch on trades based on patterns like LLUR is =
position=20
sizing and your stop. Whenever I see a strong trend that is =
not=20
offering a good consolidation of some sort (cup/handle, flat base, etc) =
I put=20
out a smalller position and use a tighter stop. Also until I have =
some=20
cushion I dont add to it. Another thing I do is look at the =
intraday=20
charts and look for a good consolidation on the 30,60, or 120 min =
chart for=20
my stop. Of course if you are strict CANSLIM your stop is based =
solely=20
off of a % so none of this matters :-)</SPAN></FONT></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
class=3D697410315-17072002></SPAN></FONT> </DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN =
class=3D697410315-17072002>David=20
Taggart</SPAN></FONT></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
class=3D697410315-17072002></SPAN></FONT> </DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
class=3D697410315-17072002> </SPAN></FONT></DIV>
<BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px">
<DIV class=3DOutlookMessageHeader dir=3Dltr align=3Dleft><FONT =
face=3DTahoma=20
size=3D2>-----Original Message-----<BR><B>From:</B>=20
owner-canslim@lists.xmission.com=20
[mailto:owner-canslim@lists.xmission.com]<B>On Behalf Of </B>Katherine =
Malm<BR><B>Sent:</B> Wednesday, July 17, 2002 8:09 AM<BR><B>To:</B>=20
canslim@lists.xmission.com<BR><B>Subject:</B> Re: [CANSLIM] chart=20
reading<BR><BR></FONT></DIV>
<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=20
the 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=20
fall back a bit, but obviously not as severe as the red line you =
showed that=20
would classify it as a double bottom. The biggest difference in the 2=20
formations in my mind is the entry point. On double bottoms, the pivot =
is $.10=20
above the middle peak of the base (center of the "W"), whereas in a =
C&H,=20
you would wait for the final shakeout to occur in the handle and then =
look for=20
the pivot point accordingly. That's not to say that a double bottom =
won't also=20
have a handle, 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>=
=20
</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.=20
I 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=20
because the second dip does not go below the first? Or is there some =
other=20
method of identifying a doublebottom=20
formation?<BR><BR>Kelly<BR><BR>-----Original Message-----<BR>From: =
Tom=20
Worley [mailto:stkguru@bellsouth.net]<BR>Sent: Wednesday, July 17, =
2002 6:32=20
AM<BR>To: CANSLIM<BR>Subject: [CANSLIM] chart =
reading<BR><BR><BR>nice, quick=20
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=20
us at <A=20
=
href=3D"http://www.neoris.com/">http://www.neoris.com/</A><BR></BLOCKQUOT=
E></BLOCKQUOTE></BODY></HTML>
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