Re: [CANSLIM] cup-without-handle; "tightness" questions

From: "zillagirl" <zillagirl@email.msn.com>
Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions
Date: Wed, 7 Aug 2002 09:40:53 -0700
Previous Article (by Author): Re: [CANSLIM] cup-without-handle; "tightness" questions michael_niemotka@baxter.com
Top of Thread: Re: [CANSLIM] cup-without-handle; "tightness" questions "Ann"
Next in Thread: Re: [CANSLIM] cup-without-handle; "tightness" questions Chazmoore@aol.com
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That was a great description charley-can you explain the double bottom =
and triple bottom in that kind of language for us newer ones?
  ----- Original Message -----=20
  From: Chazmoore@aol.com=20
  To: canslim@lists.xmission.com=20
  Sent: Wednesday, August 07, 2002 8:54 AM
  Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions


  Ann: You will probably get several responses to your question but let =
me give it a try.=20

  The left side of the cup forms when the upward price pressure hits a =
point of resistance; that is to say the sellers begin to out number the =
buyers. The stock price falls, and may continue to fall, or move =
sideways, for many months. At some point the buyers once again find the =
stock price attractive and begin buying. Volume increases as the price =
rises. As the price increases it crosses an important mid point that is =
half the distance between the left side lip and the current low. (If the =
price does not cross the mid point you cannot have a c/h formation.) As =
the price approaches the height of the left side lip, it will once again =
hit a level of resistance and begin to fall. The sellers once again =
outnumber the buyers. This time however the volume is low and begins to =
dry up. This tells us that the sellers are just about finished but the =
buyers are lurking in the background waiting to pounce. On the chart =
this appears as a downward turning line we call the handle. After a week =
or two the buyers begin to come back in and the price heads north. Now =
we see a strong increase in volume and we wait for our buy signal. When =
the price exceeds the lip formed by the right side of the cup by .10, it =
is safe to buy. It continues to be a safe buy until the price exceeds =
this pivot point by 5%.=20

  I hope this helps. Be sure to refer to the new tool Mike has made =
available to us since it clearly describes each part of the cup/handle =
on the diagram. Charley 
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<DIV><FONT face=3DArial size=3D2>That was a great description =
charley-can you=20
explain the double bottom&nbsp;and triple bottom in that kind of =
language for us=20
newer ones?</FONT></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=3DChazmoore@aol.com=20
  href=3D"mailto:Chazmoore@aol.com">Chazmoore@aol.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> Wednesday, August 07, =
2002 8:54=20
  AM</DIV>
  <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM]=20
  cup-without-handle; "tightness" questions</DIV>
  <DIV><BR></DIV><FONT face=3Darial,helvetica><FONT size=3D2>Ann: You =
will probably=20
  get several responses to your question but let me give it a try. =
<BR><BR>The=20
  left side of the cup forms when the upward price pressure hits a point =
of=20
  resistance; that is to say the sellers begin to out number the buyers. =
The=20
  stock price falls, and may continue to fall, or move sideways, for =
many=20
  months. At some point the buyers once again find the stock price =
attractive=20
  and begin buying. Volume increases as the price rises. As the price =
increases=20
  it crosses an important mid point that is half the distance between =
the left=20
  side lip and the current low. (If the price does not cross the mid =
point you=20
  cannot have a c/h formation.) As the price approaches the height of =
the left=20
  side lip, it will once again hit a level of resistance and begin to =
fall. The=20
  sellers once again outnumber the buyers. This time however the volume =
is low=20
  and begins to dry up. This tells us that the sellers are just about =
finished=20
  but the buyers are lurking in the background waiting to pounce. On the =
chart=20
  this appears as a downward turning line we call the handle. After a =
week or=20
  two the buyers begin to come back in and the price heads north. Now we =
see a=20
  strong increase in volume and we wait for our buy signal. When the =
price=20
  exceeds the lip formed by the right side of the cup by .10, it is safe =
to buy.=20
  It continues to be a safe buy until the price exceeds this pivot point =
by 5%.=20
  <BR><BR>I hope this helps. Be sure to refer to the new tool Mike has =
made=20
  available to us since it clearly describes each part of the cup/handle =
on the=20
  diagram. Charley</FONT> </FONT></BLOCKQUOTE></BODY></HTML>

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