Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] Handle's and volume
Date: Thu, 21 Nov 2002 11:12:30 -0600
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Top of Thread: [CANSLIM] Handle's and volume Marc Deiter
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This is a multi-part message in MIME format. - ------=_NextPart_000_01F2_01C2914E.E218FC00 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi Marc, I don't think the absolute volume is as important as the *trend* in = volume in the handle. As the stock builds the right side of the base, = you want to see ever increasing volume (especially on up days) = demonstrating strong accumulation. As the handle begins and the pivot = forms, the action in the handle should see volume fade back to levels = lower than recent volume levels and continue to fade as the price drifts = lower. For the most part, the down days should be on low volume, though = you'll often see one or two distribution days.=20 I like to think of it as a bevy of strong folks working hard to push a = ball uphill during the right side of the cup, then once they near the = high part of the hill, a few folks take off because they're tired and = don't want to push any longer, and a few take a break to catch their = breath. That lighter action while holding the ball up in the interim is = the handle, as it slips back a bit while the folks regroup. Those that = are committed to rolling the ball uphill stick around and hold up the = fort. When the folks taking a break are rested up and some newcomers = join in, they all help push the ball uphill with renewed conviction = (forming the breakout). Katherine ----- Original Message -----=20 From: Marc Deiter=20 To: canslim@lists.xmission.com=20 Sent: Thursday, November 21, 2002 10:54 AM Subject: [CANSLIM] Handle's and volume I was reviewing some information on handles and volume. WON mentions that volume in a good handle should dry up to a "trickle".=20 Katherine's Handle Characteristics e-mail mentions "light volume".=20 Anyone want to offer a quantifiable number on what they believe "light" and "a trickle" mean? Example, does 50% of the ADV generally qualify for light and a trickle? Marc __________________________________________________ Do you Yahoo!? Yahoo! Mail Plus - Powerful. Affordable. Sign up now. http://mailplus.yahoo.com - -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_01F2_01C2914E.E218FC00 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 6.00.2800.1106" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV>Hi Marc,</DIV> <DIV> </DIV> <DIV>I don't think the absolute volume is as important as the *trend* in = volume=20 in the handle. As the stock builds the right side of the base, you want = to see=20 ever increasing volume (especially on up days) demonstrating strong=20 accumulation. As the handle begins and the pivot forms, the action in = the handle=20 should see volume fade back to levels lower than recent volume levels = and=20 continue to fade as the price drifts lower. For the most part, the down = days=20 should be on low volume, though you'll often see one or two distribution = days.=20 </DIV> <DIV> </DIV> <DIV>I like to think of it as a bevy of strong folks working hard to = push a ball=20 uphill during the right side of the cup, then once they near the high = part of=20 the hill, a few folks take off because they're tired and don't want to = push any=20 longer, and a few take a break to catch their breath. That lighter = action while=20 holding the ball up in the interim is the handle, as it slips back a bit = while=20 the folks regroup. Those that are committed to rolling the ball uphill = stick=20 around and hold up the fort. When the folks taking a break are = rested up=20 and some newcomers join in, they all help push the ball uphill with = renewed=20 conviction (forming the breakout).</DIV> <DIV> </DIV> <DIV>Katherine</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=3Ddites@yahoo.com href=3D"mailto:dites@yahoo.com">Marc = Deiter</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> Thursday, November 21, = 2002 10:54=20 AM</DIV> <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] Handle's and = volume</DIV> <DIV><BR></DIV>I was reviewing some information on handles and = volume. =20 WON mentions<BR>that volume in a good handle should dry up to a = "trickle".=20 <BR>Katherine's Handle Characteristics e-mail mentions "light volume". = <BR>Anyone want to offer a quantifiable number on what they = believe<BR>"light"=20 and "a trickle" mean? Example, does 50% of the ADV = generally<BR>qualify=20 for light and a=20 = trickle?<BR><BR>Marc<BR><BR><BR>_________________________________________= _________<BR>Do=20 you Yahoo!?<BR>Yahoo! Mail Plus - Powerful. Affordable. Sign up = now.<BR><A=20 = href=3D"http://mailplus.yahoo.com">http://mailplus.yahoo.com</A><BR><BR>-= <BR>-To=20 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.<BR></BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_01F2_01C2914E.E218FC00-- - - - -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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