Go to Jeff Salisbury LWGate Home Page.From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions
Date: Wed, 7 Aug 2002 23:55:31 -0400
Previous Article (by Date): Re: [CANSLIM] Re: Learning curve [was: Hunting List (nee Watchlist)] "Tom Worley"
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Thanks, Ann, I still have not had / made the time to study the 3rd edition, but will pay more attention to this when I do, as it's a pattern I had overlooked as even a possibility. - ----- Original Message ----- From: "Ann" <annholly@attbi.com> To: <canslim@lists.xmission.com> Sent: Wednesday, August 07, 2002 10:42 PM Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions Hi, Tom, I've just read the 3rd edition of HTMMIS, and it's in there. On page 127, in the section called, "Basic Characteristics of Handle Areas" in the chapter called, "How to Read Charts Like an Expert and Improve your Stock Picks", WON says: "The formation of the handle area generally takes more than one or two weeks and has a downward price drift or shakeout...Volume will dry up noticeably near the lows in the handle's price pullback phase. "There are a few exceptions: Cups without handles have a somewhat higher failure rate, although many stocks do successfully advance without forming a handle. Also, some of the more volatile technology names in 1999 formed handles of only one or two weeks..." Also, in the chapter entitled, "Models of the Greatest Stock Market Winners: 1952-2001," where he shows model charts, there is a section, "Cup-Without-Handle Pattern," on pages 161-162, in which he shows 8 charts. "Cup-Without-Handle Pattern" is even an entry in the index!! In HTMMIS, 2nd ed., WON mentions cups without handles on page 164. I hope this helps! Ann - ----- Original Message ----- From: "Tom Worley" <stkguru@bellsouth.net> To: <canslim@lists.xmission.com> Sent: Wednesday, August 07, 2002 10:26 PM Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions : 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%? : : : : - : -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. : - - - -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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