RE: [CANSLIM] High vs, Low Handle?+SYMC

From: "Katherine Malm" <kmalm@earthlink.net>
Subject: RE: [CANSLIM] High vs, Low Handle?+SYMC
Date: Thu, 16 Jan 2003 09:51:26 -0600
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HI Jack & Mike,

A "standard" handle forms when the pause/pullback is at or above the
midpoint of the base. Stocks will normally pause/move up all the way up the
right side of the base, but once the midpoint is hit, there's less risk that
the stock will roll over and continue its downtrend. A clean breakout above
the beginning of the pause (pivot) once the midpoint is hit shows the stock
has some power to continue on above the beginning of the consolidation at
the left side of the cup. A high handle forms when the pullback that begins
the handle doesn't start until after the stock has already moved up past the
left side of the cup. This often happens when there's a big straight up move
off the bottom of the cup before the stock pauses.

Here's a few graphics that might clear things up:
http://www.cwhcharts.com/katherine/High+StdHandleR1.JPG

Here are some details on types of bases with some notes as to when cups with
no handles and flat bases typically occur. You'll see why SYMC is a good
example of typical action in a stock leading the charge in the current
market.

http://www.cwhcharts.com/katherine/MiscBasesCharacteristicsSm.JPG

In the case of SYMC, the stock formed a base on base pattern, with the first
base being a cup with no handle, the second being a flat base. That's a
subtle distinction from the high handle situation, primarily because the
"pause" is long enough to form a flat base >=4 wks. Either way, it's just a
method of identifying entry points.

http://www.cwhcharts.com/katherine/BaseOnBaseCup+Flat.JPG
http://www.cwhcharts.com/katherine/SYMC011003wkly.JPG
http://www.cwhcharts.com/katherine/SYMC011603.JPG

Katherine

- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of
michael_niemotka@baxter.com
Sent: Thursday, January 16, 2003 8:27 AM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] High vs, Low Handle?



Jack,

My understanding is that you can actually have a handle that forms at a
point higher than the left hand of the base. If you look at Mike Gibbons
site, cwhcharts.com  you will notice that you could have them form above
the left lip, with a default value of 5%.  I am still learning too, so
maybe one of the other gurus (Katherine, are you reading this?) will chime
in too.

Mike

Mike Niemotka , PE
Sr. Principal Engineer
Baxter Healthcare Corporation
Route 120 & Wilson Road
Round Lake, IL 60073
Tel (847) 270-4075
Fax (847) 270-4525
michael_niemotka@baxter.com



                    Jack <jtenz@yahoo.com>
                    Sent by:                      To:
canslim@lists.xmission.com
                    owner-canslim@lists.xm        cc:
                    ission.com                    Subject:     [CANSLIM]
High vs, Low Handle?


                    01/16/2003 06:51 AM
                    Please respond to
                    canslim






Mike's question/comment includes the term "High
Handle" which I'm not sure I understand relative to
the WON CWH patterns. I assume we are talking about
handle height relative to the left cup start of base?

The WON pattern should have a handle starting at least
85% from the start of the left side of the cup.

The High pattern should have a handle starting at
least 78% from the start of the left side of the cup.

If the handle starts 7% lower, why call it a high
handle?

Thanks for your comments.

Jack
- --- michael_niemotka@baxter.com wrote:
> Does it look to anyone else that SYMC has formed and
> broken out of a cwh
> with a high handle?
>
> Thanks
>
> Mike Niemotka , PE
> Sr. Principal Engineer
> Baxter Healthcare Corporation
> Route 120 & Wilson Road
> Round Lake, IL 60073
> Tel (847) 270-4075
> Fax (847) 270-4525
> michael_niemotka@baxter.com
>
>
>
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=====
Jack

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