Go to Jeff Salisbury LWGate Home Page.From: "Ann" <annholly@attbi.com>
Subject: [CANSLIM] cup-without-handle; "tightness" questions
Date: Wed, 7 Aug 2002 10:25:55 -0400
Previous Article (by Date): Re: Cups with Craps was RE: [CANSLIM] Identifying NEW leaders michael_niemotka@baxter.com
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I have been going through HTMMIS and compiling notes from Investors'Corner, ibd &A, etc., and have a question about the cup-without-handle formation--especially because more of these may be formed in this M. Q: How do you know when you should wait for the handle to form? If you wait too long, you might miss the breakout? Does it have to do with volume? In my notes (sorry: don't know from where), it says that with a cup-w/o-handle, the volume should dry up when the price comes to within 5-10% of its old high (R-side). And, with the cup-WITH-handle, don't we want the volume strong on the R-side as the price picks up? Yet on page 161 of HTMMIS (3rd ed.), on the chart for Fairchild, the volume is strong on the R-side of the cup near the rim. Q: WON (HTMMIS) talks about wanting tightness in price closes at the bottom of cup with strong volume, R-side, in handle. What is the difference between this and churning? Isn't churning strong volume with little or no price increases? Is the difference that churning happens after a strong uptrend (signaling topping), and tightness of closes happens during basing? Thank you ahead of time for clarifications anyone can give. Ann - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
Previous Article (by Date): Re: Cups with Craps was RE: [CANSLIM] Identifying NEW leaders michael_niemotka@baxter.com
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