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

From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions
Date: Wed, 7 Aug 2002 22:26:20 -0400

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Patrick and Ann,

I don't recall ever hearing about a handleless cup as a valid CANSLIM
pattern. Is this something only IBD sees, or can someone quote WON also
supporting this as a valid pattern?

- ----- Original Message -----
From: "Patrick Wahl" <pjwahl@attbi.com>
To: <canslim@lists.xmission.com>
Sent: Wednesday, August 07, 2002 12:30 PM
Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions

I don't know this for sure, but I think you might be referring to an article
where the
IBD pulled out an example of a stock that blasted off from a cup pattern
without first
forming a handle and said that not all stocks form a handle.  This is the
sort of thing
that IBD does that I find a little questionable ( and Duke has been good at
pointing
this stuff out), and that is to do an after the fact analysis and justify it
on shaky
grounds.  If a stock spiked up from a cup with no handle and then failed, I
could
easily see IBD saying -see, no handle, this is the sort of thing you have to
watch out
for, this stock should not have been bought.

So I think the easy answer is that if it doesn't form a handle and takes
off, let it go,
wiat for the next one, you don't have to catch everything, look for the
sounder
pattern.

On 7 Aug 2002 at 12:14, Ann wrote:

> Maybe I didn't form my question right. How do I know, as the cup forms its
> right side and approaches the previous high, whether it's going to be a
cup
> with a handle or without a handle? What if I am waiting for a handle to
> form, but it doesn't form and goes straight to breaking out? Then it has
> formed a cup-without-handle, but I have missed the breakout. Or do you
just
> have to be there at the time it is breaking out or catch it within 5%?

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