Go to Jeff Salisbury LWGate Home Page.From: Jack Tencza <jtenz@yahoo.com>
Subject: Re: [CANSLIM] DCOM - B/O rules
Date: Wed, 31 Jul 2002 04:29:35 -0700 (PDT)
Previous Article (by Date): Re: [CANSLIM] DCOM - B/O rules "Tom Worley"
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Tom, what date are you using for midpoint between the two dips with DCOM? Thanks - --- Tom Worley <stkguru@bellsouth.net> wrote: > I have to agree with IBD on this one, Mike. No cup > & handle, definitely would call this a double > bottom. Keep in mind with a double bottom that you > don't want two dips of equal depth, rather you want > the second one undercutting the first. Same with a > triple bottom. In this case, the second dip reached > its bottom on a reversal day and closed up. However > volume was not that impressive. > > An aggressive investor (and would take one in this > market) could have bought on 7/29, as it did trade > over the high of the high of the center point of the > "W" (but only by 4 cents, and volume not > impressive). But yesterday's volume and price > movement would mark this in my books as a b/o from a > double bottom. > > ----- Original Message ----- > From: Katherine Malm > To: canslim@lists.xmission.com > Sent: Wednesday, July 31, 2002 6:47 AM > Subject: Re: [CANSLIM] DCOM - B/O rules > > > Hi Mike, > > Here's a quote from today's "Big Picture" > Dime Community Bancshares (DCOM), which was > highlighted in Monday evening's WebLink, broke out > of a 10-week, double-bottom base. The stock climbed > 1.46 to 26.90 on more than four times normal volume. > > Katherine > > ----- Original Message ----- > From: Mike Gibbons > To: canslim@lists.xmission.com > Sent: Tuesday, July 30, 2002 11:37 PM > Subject: RE: [CANSLIM] DCOM - B/O rules > > > 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 are inconsistent statements > on this) so it didn't qualify as a CwH either (but > 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% above > 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, but 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 > 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 > > 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 > > 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=5 > > --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 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 > > > > ===== Jack __________________________________________________ Do You Yahoo!? Yahoo! Health - Feel better, live better http://health.yahoo.com - - - -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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