Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: [CANSLIM] Re: Handles, A list of Characteristics (was: CVH handle)
Date: Fri, 16 Aug 2002 16:53:54 -0500
Next Article (by Author): Re: [CANSLIM] stop losses and profits "Katherine Malm"
Previous Article (by Author): Re: [CANSLIM] stop losses and profits "Katherine Malm"
Articles sorted by: [Date]
[Author]
[Subject]
This is a multi-part message in MIME format. - ------=_NextPart_000_0144_01C24545.812041B0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi Norm, Yes, I did make note of the minimum 1 wk handle length in my handwritten = notes. I may as well post this summary that I made of handles from my = own notes to go with it: HANDLES General Requirements: 1. Handles most often begin to form lower than the left side of the = base, generally when the stock has climbed within 5-15% of the high. 2. The midpoint of a good handle should be higher than the midpoint of = the base. 3. The handle should form in the upper half of the base. 4. The handle should form above the 200 day MA, but trade may often lull = below the 50 day MA. 5. The handle should drift sideways or lower. Upward "wedging" handles = are failure prone because the upwardly drifting price doesn't shake out = the weak holders, leaving the stock vulnerable to a correction. Wedging = handles also make pivots harder to spot. WON considers this the most = important aspect of a handle formation. 6. The handle should drift lower on light volume. This shows existing = holders are content to remain invested. 7. Within the handle, volatility should contract. The distance between = price highs and lows (intraday and day to day) should narrow. Avoid = zigzagging or wide and loose handles. Choppy handles carry more = uncertainty. 8. In normal markets, proper handles correct 10-20%. In Bear markets, = they can correct as much as 30%. A handle that drifts <10% is fine as = long as it is drifting downward and meets other requirements. 9. The handle must be at least one week in length but can stretch as = much as 7-10 weeks. It should be smaller in proportion to the size of = the cup. Special Considerations: 1. "High handles" can begin to form at prices higher than the left side = of the base. This is neither ideal nor common, but can still be = successful as long as the other handle requirements are met. 2. Be sure to look at both daily and weekly charts, as stocks with = lengthy bases will have long handles. The lengthy handle may appear as a = base if looking at a daily chart. Long bases signal strong support and = are very strong patterns. (The longer the base, the stronger the = subsequent move.) Based on a study done by the IBD in 96-97, small and = mid cap stocks had 33 week bases on average. Large caps had 66 week = bases on average. 3. A stock can form a handle, near its pivot point and then begin = forming another handle. In this case, consider this to be one long = handle. 4. "No-handle" bases are more error prone, but tend to work at the start = of a fresh rally, especially if the rally is strong. Look for volume to = dry up as the stock comes within 5-10% of its old peak. Stocks breaking = out of bases without a handle are most likely industry leaders; lead the = market in relative price performance, sales and earnings growth; and = have high institutional sponsorship. 5. Double bottom bases can form a handle, though normally they do not do = so.=20 [Note: These notes are compiled from many years worth of Investors' = Corners, HTMMIS, the IBD web site and other misc. sources.] - --Katherine - ----- Original Message -----=20 From: "Boyd" <theboyd@tisd.net> To: <canslim@lists.xmission.com> Sent: Friday, August 16, 2002 3:05 PM Subject: Re: [CANSLIM] CVH handle | If memory serves me correctly, 1 week is long enuf. I think maybe I = saw | this also on Katherine's hand-sketched charts?? If not, nevermind:-) |=20 | Norm |=20 |=20 | Hermann Ertl writes: |=20 | > > From: "Tom Worley" <stkguru@bellsouth.net> | > > Date: Thu, 15 Aug 2002 00:57:00 -0400 | > > | > > pattern is too short (one week) to start calling this a handle. | >=20 | >=20 | >=20 | >=20 | > What is the minimum length of a handle? | >=20 | >=20 | >=20 | >=20 | >=20 | > - | > -To subscribe/unsubscribe, email "majordomo@xmission.com" | > -In the email body, write "subscribe canslim" or | > -"unsubscribe canslim". Do not use quotes in your email. | >=20 |=20 | - | -To subscribe/unsubscribe, email "majordomo@xmission.com" | -In the email body, write "subscribe canslim" or | -"unsubscribe canslim". Do not use quotes in your email. - ------=_NextPart_000_0144_01C24545.812041B0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Diso-8859-1"> <META content=3D"MSHTML 6.00.2716.2200" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY> <DIV>Hi Norm,</DIV> <DIV> </DIV> <DIV>Yes, I did make note of the minimum 1 wk handle length in my = handwritten=20 notes. I may as well post this summary that I made of handles from my = own notes=20 to go with it:</DIV> <DIV> </DIV> <DIV>HANDLES</DIV> <DIV><EM>General Requirements:</EM></DIV> <DIV>1. Handles most often begin to form lower than the left side of the = base,=20 generally when the stock has climbed within 5-15% of the high.</DIV> <DIV>2. The midpoint of a good handle should be higher than the midpoint = of the=20 base.</DIV> <DIV>3. The handle should form in the upper half of the base.</DIV> <DIV>4. The handle should form above the 200 day MA, but trade may often = lull=20 below the 50 day MA.</DIV> <DIV>5. The handle should drift sideways or lower. Upward "wedging" = handles are=20 failure prone because the upwardly drifting price doesn't shake out the = weak=20 holders, leaving the stock vulnerable to a correction. Wedging handles = also make=20 pivots harder to spot. <EM>WON considers this the most important aspect = of a=20 handle formation.</EM></DIV> <DIV>6. The handle should drift lower on light volume. This shows = existing=20 holders are content to remain invested.</DIV> <DIV>7. Within the handle, volatility should contract. The distance = between=20 price highs and lows (intraday and day to day) should narrow. Avoid = zigzagging=20 or wide and loose handles. Choppy handles carry more uncertainty.</DIV> <DIV>8. In normal markets, proper handles correct 10-20%. In Bear = markets, they=20 can correct as much as 30%. A handle that drifts <10% is fine as long = as it=20 is drifting downward and meets other requirements.</DIV> <DIV>9. The handle must be at least one week in length but can stretch = as much=20 as 7-10 weeks. It should be smaller in proportion to the size of the = cup.</DIV> <DIV> </DIV> <DIV><EM>Special Considerations:</EM></DIV> <DIV>1. "High handles" can begin to form at prices higher than the left = side of=20 the base. This is neither ideal nor common, but can still be successful = as long=20 as the other handle requirements are met.</DIV> <DIV>2. Be sure to look at both daily and weekly charts, as stocks with = lengthy=20 bases will have long handles. The lengthy handle may appear as a base if = looking=20 at a daily chart. Long bases signal strong support and are very strong = patterns.=20 (The longer the base, the stronger the subsequent move.) Based on a = study done=20 by the IBD in 96-97, small and mid cap stocks had 33 week bases on = average.=20 Large caps had 66 week bases on average.</DIV> <DIV>3. A stock can form a handle, near its pivot point and then begin = forming=20 another handle. In this case, consider this to be one long = handle.</DIV> <DIV>4. "No-handle" bases are more error prone, but tend to work at the = start of=20 a fresh rally, especially if the rally is strong. Look for volume to dry = up as=20 the stock comes within 5-10% of its old peak. Stocks breaking out of = bases=20 without a handle are most likely industry leaders; lead the market in = relative=20 price performance, sales and earnings growth; and have high = institutional=20 sponsorship.</DIV> <DIV>5. Double bottom bases can form a handle, though normally they do = not do=20 so. </DIV> <DIV> </DIV> <DIV>[Note: These notes are compiled from many years worth of Investors' = Corners, HTMMIS, the IBD web site and other misc. sources.]</DIV> <DIV> </DIV> <DIV>--Katherine</DIV> <DIV>----- Original Message -----=20 <DIV>From: "Boyd" <<A=20 href=3D"mailto:theboyd@tisd.net">theboyd@tisd.net</A>></DIV> <DIV>To: <<A=20 href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>= ></DIV> <DIV>Sent: Friday, August 16, 2002 3:05 PM</DIV> <DIV>Subject: Re: [CANSLIM] CVH handle</DIV></DIV> <DIV><BR></DIV>| If memory serves me correctly, 1 week is long = enuf. I=20 think maybe I saw<BR>| this also on Katherine's hand-sketched = charts?? If=20 not, nevermind:-)<BR>| <BR>| Norm<BR>| <BR>| <BR>| Hermann Ertl = writes:<BR>|=20 <BR>| > > From: "Tom Worley" <<A=20 href=3D"mailto:stkguru@bellsouth.net">stkguru@bellsouth.net</A>><BR>| = > >=20 Date: Thu, 15 Aug 2002 00:57:00 -0400<BR>| > ><BR>| > > = pattern is=20 too short (one week) to start calling this a handle.<BR>| > <BR>| = > <BR>|=20 > <BR>| > <BR>| > What is the minimum length of a handle?<BR>| = >=20 <BR>| > <BR>| > <BR>| > <BR>| > <BR>| > -<BR>| > -To=20 subscribe/unsubscribe, email "<A=20 href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>| = > -In=20 the email body, write "subscribe canslim" or<BR>| > -"unsubscribe=20 canslim". Do not use quotes in your email.<BR>| > <BR>| <BR>| = - -<BR>|=20 - -To subscribe/unsubscribe, email "<A=20 href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>| = - -In the=20 email body, write "subscribe canslim" or<BR>| -"unsubscribe = canslim". Do=20 not use quotes in your email.</BODY></HTML> - ------=_NextPart_000_0144_01C24545.812041B0-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
Next Article (by Author): Re: [CANSLIM] stop losses and profits "Katherine Malm"
Previous Article (by Author): Re: [CANSLIM] stop losses and profits "Katherine Malm"
Articles sorted by: [Date]
[Author]
[Subject]