Go to Jeff Salisbury LWGate Home Page.From: "Mike Gibbons" <mikegibbons@proactech.com>
Subject: RE: [CANSLIM] DCOM - B/O rules
Date: Tue, 30 Jul 2002 18:37:20 -1000
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I see it more as a cup-with-handle (but when the only tool you have is a
hammer, everything looks like a nail!) because the two dips were not of
equal depth, but I'm not sure what the tolerance limits are.
However, as a CwH it formed a pivot at $25.90 on 7/10. It then went on to
dip to a low of $20.20 in the handle, which was a 22% drop. WON says that=
a
stock should only correct by at most 15% in the handle (although there ar=
e
inconsistent statements on this) so it didn't qualify as a CwH either (bu=
t
then virtually nothing has in the last couple of weeks). Nevertheless,
todays breakout was very strong and could be buyable up to $27.12 (5% abo=
ve
pivot).
Aloha,
Mike Gibbons
Proactive Technologies, LLC
http://www.proactech.com
-----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine Malm
Sent: Tuesday, July 30, 2002 2:46 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] DCOM - B/O rules
Hi Victor,
I'll leave the specific analysis of the DCOM chart to somebody else, bu=
t
in the meantime, here's something to get you started:
Question
Can a double-bottom base have a handle, or is it just the start=
of
another base?
Answer
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 pr=
ice
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
Also, go to our Investor's Corner archive entitled =93What Can
Technical Indicators Tell Me?=94 to view past articles on this topic -
http://www.investors.com/learn/IC.asp#tech
Our =93Ask Bill O=92Neil=94 archive offers a compilation of Q&A=92=
s on the
subject of chart reading at this link -
http://www.investors.com/askBill/Search_ByTopic.asp?TopicID=3D5
--Katherine
----- Original Message -----
From: vchang@win-invest.com
To: canslim@lists.xmission.com
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 dou=
ble
bottom. On Tuesday IBD weblink said " ... Dime hit 25.94 Monday, jus=
t
missing a breakout..." .
As a newbie trying to learn more about charts and breakouts, this see=
ms
like
a great example to check my understanding.
If I am getting it right, the reason why DCOM is deemed to have b/o i=
s
because of the following two easons:
a) It closed at 26.90 having achieved an high of 27.0, and that is ab=
ove
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 f=
rom
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 ti=
me
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 volum=
e)
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 momen=
t,
is
this a valid CANSLIM candidate stock?
Rgds
Victor Chang
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<DIV><SPAN class=3D630372004-31072002><FONT face=3DArial color=3D#0000ff =
size=3D2>I see=20
it more as a cup-with-handle (but when the only tool you have is a =
hammer,=20
everything looks like a nail!) because the two dips were not of equal =
depth, but=20
I'm not sure what the tolerance limits are.</FONT></SPAN></DIV>
<DIV><SPAN class=3D630372004-31072002><FONT face=3DArial color=3D#0000ff =
size=3D2></FONT></SPAN> </DIV>
<DIV><SPAN class=3D630372004-31072002><FONT face=3DArial color=3D#0000ff =
size=3D2>However, as a CwH it formed a pivot at $25.90 on 7/10. It then =
went on to=20
dip to a low of $20.20 in the handle, which was a 22% drop. WON says =
that a=20
stock should only correct by at most 15% in the handle (although there =
are=20
inconsistent statements on this) so it didn't qualify as a CwH either =
(but then=20
virtually nothing has in the last couple of weeks). Nevertheless, todays =
breakout was very strong and could be buyable up to $27.12 (5% above=20
pivot).</FONT></SPAN></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Aloha,</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Mike Gibbons<BR>Proactive Technologies, =
LLC</FONT></DIV>
<DIV><FONT face=3DArial size=3D2><A=20
href=3D"http://www.proactech.com/">http://www.proactech.com</A></FONT></D=
IV>
<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> Tuesday, July 30, 2002 2:46 PM<BR><B>To:</B>=20
canslim@lists.xmission.com<BR><B>Subject:</B> Re: [CANSLIM] DCOM - B/O =
rules<BR><BR></FONT></DIV>
<DIV>Hi Victor,</DIV>
<DIV> </DIV>
<DIV>I'll leave the specific analysis of the DCOM chart to somebody =
else, but=20
in 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"=20
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=20
(buy) point typically occurs when the stock clears the peak in =
the=20
middle of the W-shaped pattern.</FONT></STRONG> Sometimes, =
double=20
bottoms will form handles before they reach this point. In those =
situations, the pivot point is when the stock clears the highest =
price=20
point in the handle area. The handle should drift downward =
slightly and=20
usually form over a period of one to seven weeks.<BR><BR>Course =
1 in the=20
IBD Learning Center on our Web site has a lesson on chart =
reading. To=20
get there directly, go to this link - <A=20
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=20
on 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>=
=20
</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=20
from a double<BR>bottom. On Tuesday IBD weblink said " ... =
Dime hit=20
25.94 Monday, just<BR>missing a breakout..." .<BR><BR>As a newbie =
trying to=20
learn more about charts and breakouts, this seems like<BR>a great =
example to=20
check my understanding.<BR><BR>If I am getting it right, the reason =
why DCOM=20
is deemed to have b/o is<BR>because of the following two =
easons:<BR><BR>a)=20
It 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=20
was achieved at a volume 1,056,800 which is 378% up from the<BR>day =
before=20
and four times the average daily volume of 221,100<BR><BR>What is =
the exact=20
rule for a breakout mathematically? (Lets say that I were<BR>to =
program it=20
in say 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=20
some<BR>sort of moving average of the daily volume, or just =
yeaterday's=20
volume)<BR>THEN yippe it is a B/O<BR><BR>Is there any =
"fuzziness" to=20
the above rules?<BR><BR>BTW, the fundamentals on DCOM also look =
great,=20
ignoring M for a moment, is<BR>this a valid CANSLIM candidate=20
stock?<BR><BR>Rgds<BR><BR>Victor=20
Chang<BR><BR><BR></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>
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