Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] DCOM - B/O rules
Date: Tue, 30 Jul 2002 19:45:43 -0500
Next Article (by Subject): Re: [CANSLIM] Moving Averages "Katherine Malm"
Previous Article (by Subject): [CANSLIM] DCOM - B/O rules
Top of Thread: [CANSLIM] DCOM - B/O rules
Articles sorted by: [Date]
[Author]
[Subject]
This is a multi-part message in MIME format.
- ------=_NextPart_000_0123_01C23801.B1128960
Content-Type: multipart/alternative;
boundary="----=_NextPart_001_0124_01C23801.B1128960"
- ------=_NextPart_001_0124_01C23801.B1128960
Content-Type: text/plain;
charset="iso-8859-1"
Content-Transfer-Encoding: quoted-printable
Hi Victor,
I'll leave the specific analysis of the DCOM chart to somebody else, but =
in the meantime, here's something to get you started:
Question=20
Can a double-bottom base have a handle, or is it just the start =
of another base?=20
=20
Answer=20
In a double-bottom base, the pivot (buy) point typically occurs =
when the stock clears the peak in the middle of the W-shaped pattern. =
Sometimes, double bottoms will form handles before they reach this =
point. In those situations, the pivot point is when the stock clears the =
highest price point in the handle area. The handle should drift downward =
slightly and usually form over a period of one to seven weeks.
Course 1 in the IBD Learning Center on our Web site has a lesson =
on chart reading. To get there directly, go to this link - =
http://www.investors.com/learn/B09.asp=20
Also, go to our Investor's Corner archive entitled "What Can =
Technical Indicators Tell Me?" to view past articles on this topic - =
http://www.investors.com/learn/IC.asp#tech=20
Our "Ask Bill O'Neil" archive offers a compilation of Q&A's on the =
subject of chart reading at this link - =
http://www.investors.com/askBill/Search_ByTopic.asp?TopicID=3D5
--Katherine=20
----- Original Message -----=20
From: vchang@win-invest.com=20
To: canslim@lists.xmission.com=20
Sent: Tuesday, July 30, 2002 7:18 PM
Subject: [CANSLIM] DCOM - B/O rules
MessageOn Wedsday's edition (today) IBD listed DCOM as b/o from a =
double
bottom. On Tuesday IBD weblink said " ... Dime hit 25.94 Monday, just
missing a breakout..." .
As a newbie trying to learn more about charts and breakouts, this =
seems like
a great example to check my understanding.
If I am getting it right, the reason why DCOM is deemed to have b/o is
because of the following two easons:
a) It closed at 26.90 having achieved an high of 27.0, and that is =
above the
previous high of 26.80 back in May 17, 2002.
b) The new high was achieved at a volume 1,056,800 which is 378% up =
from the
day before and four times the average daily volume of 221,100
What is the exact rule for a breakout mathematically? (Lets say that I =
were
to program it in say Metastock?)
Base on this case I can see two rules at least (in pseudo-code):
IF today's high is greater than the previous high (is this the all =
time high
or just the rolling 52 week high?)
AND
IF today's volume is greater than N times the normal volume (is this =
some
sort of moving average of the daily volume, or just yeaterday's =
volume)
THEN yippe it is a B/O
Is there any "fuzziness" to the above rules?
BTW, the fundamentals on DCOM also look great, ignoring M for a =
moment, is
this a valid CANSLIM candidate stock?
Rgds
Victor Chang
- ------=_NextPart_001_0124_01C23801.B1128960
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 Victor,</DIV>
<DIV> </DIV>
<DIV>I'll leave the specific analysis of the DCOM chart to somebody =
else, but in=20
the meantime, here's something to get you started:</DIV>
<DIV> </DIV>
<DIV>
<TABLE cellSpacing=3D0 width=3D"100%" border=3D0>
<TBODY>
<TR>
<TD class=3Dsubtitle>Question</TD></TR>
<TR>
<TD class=3Dtextcell> </TD>
<TD class=3Dtextcell>Can a double-bottom base have a handle, or is =
it just=20
the start of another base?</TD></TR>
<TR>
<TD><IMG height=3D6 alt=3D""=20
src=3D"http://investdaily.custhelp.com/rnt/rnw/img/trnsp.gif" =
width=3D1></TD></TR>
<TR>
<TD class=3Dsubtitle> </TD>
<TD class=3Dsubtitle>Answer</TD></TR>
<TR>
<TD class=3Dtextcell> </TD>
<TD class=3Dtextcell>
<DIV>In a double-bottom base, <STRONG><FONT color=3D#0000ff>the =
pivot (buy)=20
point typically occurs when the stock clears the peak in the =
middle of the=20
W-shaped pattern.</FONT></STRONG> Sometimes, double bottoms will =
form=20
handles before they reach this point. In those situations, the =
pivot point=20
is when the stock clears the highest price point in the handle =
area. The=20
handle should drift downward slightly and usually form over a =
period of=20
one to seven weeks.<BR><BR>Course 1 in the IBD Learning Center on =
our Web=20
site has a lesson on chart reading. To get there directly, go to =
this link=20
- <A href=3D"http://www.investors.com/learn/B09.asp"><FONT =
face=3DVerdana=20
color=3D#336699>http://www.investors.com/learn/B09.asp</FONT></A>=20
<BR><BR>Also, go to our Investor's Corner archive entitled =93What =
Can=20
Technical Indicators Tell Me?=94 to view past articles on this =
topic - <A=20
href=3D"http://www.investors.com/learn/IC.asp#tech"><FONT =
face=3DVerdana=20
=
color=3D#336699>http://www.investors.com/learn/IC.asp#tech</FONT></A>=20
<BR><BR>Our =93Ask Bill O=92Neil=94 archive offers a compilation =
of Q&A=92s on=20
the subject of chart reading at this link - <A=20
=
href=3D"http://www.investors.com/askBill/Search_ByTopic.asp?TopicID=3D5">=
<FONT=20
face=3DVerdana=20
=
color=3D#336699>http://www.investors.com/askBill/Search_ByTopic.asp?Topic=
ID=3D5</FONT></A></DIV>
<DIV> </DIV>
<DIV>--Katherine</DIV></TD></TR></TBODY></TABLE></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=3Dvchang@win-invest.com=20
href=3D"mailto:vchang@win-invest.com">vchang@win-invest.com</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> Tuesday, July 30, 2002 =
7:18=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] DCOM - B/O =
rules</DIV>
<DIV><BR></DIV>MessageOn Wedsday's edition (today) IBD listed DCOM as =
b/o from=20
a double<BR>bottom. On Tuesday IBD weblink said " ... Dime hit =
25.94=20
Monday, just<BR>missing a breakout..." .<BR><BR>As a newbie trying to =
learn=20
more about charts and breakouts, this seems like<BR>a great example to =
check=20
my understanding.<BR><BR>If I am getting it right, the reason why DCOM =
is=20
deemed to have b/o is<BR>because of the following two =
easons:<BR><BR>a) It=20
closed at 26.90 having achieved an high of 27.0, and that is above=20
the<BR>previous high of 26.80 back in May 17, 2002.<BR><BR>b) The new =
high was=20
achieved at a volume 1,056,800 which is 378% up from the<BR>day before =
and=20
four times the average daily volume of 221,100<BR><BR>What is the =
exact rule=20
for a breakout mathematically? (Lets say that I were<BR>to program it =
in say=20
Metastock?)<BR><BR>Base on this case I can see two rules at least (in=20
pseudo-code):<BR><BR>IF today's high is greater than the previous high =
(is=20
this the all time high<BR>or just the rolling 52 week =
high?)<BR>AND<BR>IF=20
today's volume is greater than N times the normal volume (is this =
some<BR>sort=20
of moving average of the daily volume, or just yeaterday's =
volume)<BR>THEN=20
yippe it is a B/O<BR><BR>Is there any "fuzziness" to the above=20
rules?<BR><BR>BTW, the fundamentals on DCOM also look great, ignoring =
M for a=20
moment, is<BR>this a valid CANSLIM candidate =
stock?<BR><BR>Rgds<BR><BR>Victor=20
Chang<BR><BR><BR></BLOCKQUOTE></BODY></HTML>
- ------=_NextPart_001_0124_01C23801.B1128960--
- ------=_NextPart_000_0123_01C23801.B1128960
Content-Type: image/gif;
name="trnsp.gif"
Content-Transfer-Encoding: base64
Content-Location: http://investdaily.custhelp.com/rnt/rnw/img/trnsp.gif
R0lGODlhAQABAJH/AP///wAAAP///wAAACH/C0FET0JFOklSMS4wAt7tACH5BAEAAAIALAAAAAAB
AAEAAAICVAEAOw==
- ------=_NextPart_000_0123_01C23801.B1128960--
- -
- -To subscribe/unsubscribe, email "majordomo@xmission.com"
- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim". Do not use quotes in your email.
Next Article (by Subject): Re: [CANSLIM] Moving Averages "Katherine Malm"
Previous Article (by Subject): [CANSLIM] DCOM - B/O rules
Top of Thread: [CANSLIM] DCOM - B/O rules
Articles sorted by: [Date]
[Author]
[Subject]