Go to Jeff Salisbury LWGate Home Page.From: "Mike Gibbons" <mikegibbons@proactech.com>
Subject: RE: [CANSLIM] cup w/o handle, churning
Date: Wed, 7 Aug 2002 08:35:28 -1000
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Hi Ann, Perhaps the key to getting your understanding of this nailed is to analyze the phrase from your posting "but I had in my notes ... that the volume should dry up on the R-side of a Cup-without-Handle." As I understand it, the volume should be above the 50 ADV on at least a few days as it comes up the right side of the cup and those days should be accompanied by a price increase. Once the handle has started to form, you now want the volume to drop below the 50 ADV on most days. In particular, you don't want to see above average volume accompanied by large downward price moves, as this is a sign of weakness. (Katherine pointed this out earlier). If you run the chart selector that I posted yesterday, you will see that the stocks selected are given a CQ rating. This is a metric that attempts to quantify the qualities I mentioned in the previous paragraph. (see my earlier post today also). 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 Ann Sent: Wednesday, August 07, 2002 6:49 AM To: CANSLIM Listserv Subject: [CANSLIM] cup w/o handle, churning Thanks, Charley, Mike, Patrick, Nancy, Katherine, This is such a great list. It's amazing to be able to post questions and get all these prompt and helpful replies. Thank you, all. My questions arose, when I was looking at the charts in Chapter 13 of HTMMIS. The Cup-without-Handle patterns are on pages 161-162. Some of the charts point out "strong up weeks on big volume" on the R-side of the cup, but I had in my notes (possibly from Investors' Corner, as I think Charley suggests) that the volume should dry up on the R-side of a Cup-without-Handle. But, as I look over all the charts (and these are charts that WON picked because the stocks flew after breakout), no one chart has ALL the characteristics you should look for. For example, in the CSCO chart (p. 158), the RS line was not at an all-time high before the stock took off in '95. I guess the moral of the story is that you have to take a preponderance of indicators, and not just get stuck over one of them missing. (But then, that "one" could later prove to be your downfall!! Alas!). Thanks again, 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. - - - -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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