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 16:22:41 -0700
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Thanks Charlie-I appreciate you taking the time to walk me through that. =
Nancy
  ----- Original Message -----=20
  From: Chazmoore@aol.com=20
  To: canslim@lists.xmission.com=20
  Sent: Wednesday, August 07, 2002 3:29 PM
  Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions


  ZillaGirl: You asked if I would try to explain the double/triple =
bottom. This is just my opinion but I suspect they are formations that =
started out to be cups with handles and were mutated along the way.=20
  They start with the selloff at a point of price resistance, which is =
technical talk meaning the sellers overpowered the buyers, or simply, =
more sellers came to the party than buyers. (When I see this happening I =
feel like the smart buyers are just taking a profit they helped to =
create. Nothing basically wrong with the stock, its just time to move =
some money from the table.) At some point the price looks so attractive =
the buyers return. They are buying a company they like at discount =
prices.=20
  With volume, the price moves up the right side and crosses the mid =
point between the high and low prices. The something unexpected happens. =
It could be troubling news about the company or the market, and the =
buyers turn to sellers and the price heads south again. This time, the =
stock makes a new low, maybe one or two points below the old low. The =
buyers look for the all clear and resume buying. Now it gets tricky for =
CANSLIMers. As the price exceeds the middle of the W, the buy rules kick =
in. However, it is possible for a double bottom to form a handle at this =
stage, and if it does, then the buy signal changes to the peak, plus =
.10, of the right leg of the W.=20

  As I under it, the rare triple bottom is the same as a double bottom, =
but with one more sell off.=20

  Charley 
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<DIV><FONT face=3DArial size=3D2>Thanks Charlie-I appreciate you taking =
the time to=20
walk me through that. Nancy</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 3:29=20
  PM</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>ZillaGirl: =
You asked if=20
  I would try to explain the double/triple bottom. This is just my =
opinion but I=20
  suspect they are formations that started out to be cups with handles =
and were=20
  mutated along the way. <BR>They start with the selloff at a point of =
price=20
  resistance, which is technical talk meaning the sellers overpowered =
the=20
  buyers, or simply, more sellers came to the party than buyers. (When I =
see=20
  this happening I feel like the smart buyers are just taking a profit =
they=20
  helped to create. Nothing basically wrong with the stock, its just =
time to=20
  move some money from the table.) At some point the price looks so =
attractive=20
  the buyers return. They are buying a company they like at discount =
prices.=20
  <BR>With volume, the price moves up the right side and crosses the mid =
point=20
  between the high and low prices. The something unexpected happens. It =
could be=20
  troubling news about the company or the market, and the buyers turn to =
sellers=20
  and the price heads south again. This time, the stock makes a new low, =
maybe=20
  one or two points below the old low. The buyers look for the all clear =
and=20
  resume buying. Now it gets tricky for CANSLIMers. As the price exceeds =
the=20
  middle of the W, the buy rules kick in. However, it is possible for a =
double=20
  bottom to form a handle at this stage, and if it does, then the buy =
signal=20
  changes to the peak, plus .10, of the right leg of the W. <BR><BR>As I =
under=20
  it, the rare triple bottom is the same as a double bottom, but with =
one more=20
  sell off. <BR><BR>Charley</FONT> </FONT></BLOCKQUOTE></BODY></HTML>

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