Cup w/ Handles

[jae16]

Good point since a Cup w/ Handle is considered a continuation pattern...altho I personally use 20%.

Although it remains to be seen whether GEHL or WIRE will actually form the right side of a cup and then handle ...you can look at a longer term chart of each and see that they actually did rise by 30% up to the left side cup high...best, Doug(IIC)



WEEKLY CHART:

I am gonna use 27.12 just to be safe...

[IIC]

So how important is it for a CwH to have an upward slope to the left rim of the cup? I've seen one website that says you would like to see the price rise by about 30% leading to the cup. Both GEHL and WIRE don't seem to fit that criteria, but how important is that?

Good point since a Cup w/ Handle is considered a continuation pattern...altho I personally use 20%.

Although it remains to be seen whether GEHL or WIRE will actually form the right side of a cup and then handle ...you can look at a longer term chart of each and see that they actually did rise by 30% up to the left side cup high...best, Doug(IIC)



WEEKLY CHART:

[stojakapimp]

GEHL and WIRE

So how important is it for a CwH to have an upward slope to the left rim of the cup? I've seen one website that says you would like to see the price rise by about 30% leading to the cup. Both GEHL and WIRE don't seem to fit that criteria, but how important is that?

[IIC]

So I'm fairly new to stocks and have been reading up on technical analysis and this whole Cups with Handles business, but I stumbled upon GMCR and thought that it looked like a fairly good CwH shape. What do you think? It looks like it just finished the handle and could be on it's way back up. Thoughts?

Yes...it is on this week's list

[stojakapimp]

Gmcr

So I'm fairly new to stocks and have been reading up on technical analysis and this whole Cups with Handles business, but I stumbled upon GMCR and thought that it looked like a fairly good CwH shape. What do you think? It looks like it just finished the handle and could be on it's way back up. Thoughts?

[IIC]

Ski... I am just hoping the market plays nice, and that WIRE and GEHL start to move up to form the right side of the base... I never thought of that strategy, and I am going to try that play on these stocks market willing...

How long do you wait to make a purchase generally on these?

It is a strategy that can work as Ski points out...But I'd like to see some increasing eps and sales on these two.

[jae16]

Ski... I am just hoping the market plays nice, and that WIRE and GEHL start to move up to form the right side of the base... I never thought of that strategy, and I am going to try that play on these stocks market willing...

How long do you wait to make a purchase generally on these?

[IIC]

Doug,
Do you even look at the fundamentals before trading the cup w/ handles? How's it going ? Has there been a slowdown for you in the last couple months? Funny, some trade on fundies alone, some on technical alone, and some with a combo of both.

-------------billyjoe

Yes I do...The ones that are more fundamentally sound would be ones that I might give more room to and hold longer and that I would put more money into.

I did very well trading the CwH's and PoI lists from late April till late October although August was quiet.

The chart pattern along with many other patterns work best in an uptrending market...That's why I reverted to more day and short swing trades...The swings have not really worked out so hot overall but the day trades have....But most have not been from the above lists.

I'll continue to do the lists...whenever the market starts an uptrend again I look forward to concentrating on the lists again.

[skiracer]

Doug,
Do you even look at the fundamentals before trading the cup w/ handles? How's it going ? Has there been a slowdown for you in the last couple months? Funny, some trade on fundies alone, some on technical alone, and some with a combo of both.

-------------billyjoe

Billyjoe,
I usually look at the fundamental side of the coin. If they are strong fundamentally and the chart pattern shows and expected move up or down then that makes it all the better in my mind. But there are charts that give off such a strong pattern either long or short that the fundamentals don't concern me. People that trade just to trade and fulfill the need to be in action will go broke every time.

[billyjoe]

Doug,
Do you even look at the fundamentals before trading the cup w/ handles? How's it going ? Has there been a slowdown for you in the last couple months? Funny, some trade on fundies alone, some on technical alone, and some with a combo of both.

-------------billyjoe

[IIC]

This week's Cups w/ Handles and Patterns of Interest are updated at http://SharpTraders.com

Last week the CwH list was 10 up 10 dn...Not too bad I guess considering the Naz was 1071 up 2125 dn

[IIC]

As a reminder, I have 5 links to descriptions of the Cup w/ Handle pattern at http://SharpTraders.com on the Cups w/ Handles page

[skiracer]

Alright got ya... I've been checking out your website daily now btw and it has some very good intelligent information on there.

I also went out and bought one of the Bulkowski technical analysis books from the website you reccomeneded to me... Hopefully that should help me find these patterns some.

Bulkowski's Encyclopedia of Chart Patterns and Martin Pring's Book on Technical Analysis are the two that I would recommend as necessary for anyone who wants to learn about the technical analysis of charts and technical analysis in general. Glad you find my charts helpful. That site certainly won't hurt you and there are plenty of others that are putting up some good stuff over there. Doug is also there with lots of charts and info.

[jae16]

Alright got ya... I've been checking out your website daily now btw and it has some very good intelligent information on there.

I also went out and bought one of the Bulkowski technical analysis books from the website you reccomeneded to me... Hopefully that should help me find these patterns some.

[skiracer]

Ski can we still consider this a cup w/ handle pattern? I ask because we closed above the left portion of the cup? I am not sure how that should be regarded?

I wish I could answer that truthfully and that it would be the case everytime. You very seldom get them to start making the handle right at the exact point of a line across the tops of the left and right sides of the cup. I give them some leeway above the right side and see how the handle developes from there. How much is determined by where and when it begins to slope gently downward into a handle formation if it does. I wouldn't accept it going higher than .5 higher on the right side top than on the left side top. I find the ones that perform the best are the ones that start their handle within .15/.25 of the line across the tops of the left and right sides. I always try to find and trade the ones that are closest to the definition but there are many definitions and thoughts on the max and min of where it should begin. I think there is a definition that states .10 max. above the line. Some cup bases go off and never form the handle. I like the charts to form the pattern and go with the percentages. If you adhere to the handle starting within .25 off that line and it forms a handle as I stated then you are in business to start looking for and expecting a breakout.