Cup w/ Handles

[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

[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

[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.

[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.

[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]

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.

[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]

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]

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 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:

[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...

[skiracer]

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?

It's important to understand that these two patterns are not cup bases yet. Therefore some leeway on the definition. If I were going to call them cup bases with handles then I would put alot more emphasis on the definition and try to get as close to the true definition as stated by Bulkowski for cups and handle bases as I could. But they are not cups yet and are just a pattern that I like to trade and have used numerous times to catch early what turns out to be a cup base and handle pattern 6 or 7 points later after they have made the right side of their cup. I am just getting in early on what I expect to mature into a full cup. When you catch the right ones at this point you can see how rewarding they can be if they do make the right side as expected. And believe me a large percentage of the right ones do.
These are low risk and high reward setups and trades that have to be managed properly by setting a stop no more than 7% from your entry and to have the emotional control to let the gains run out to their maximum. That means controlling the trade by bring a trailing stop up to specific points as the trades makes the right side of the cup. That is significant in that if you bring it up to close you run the risk of getting stopped out before you maximize the gains and it makes the complete right side. But you can always re-enter. I think I caught both of these at the right point and have placed myself in a position to max out on a low risk setup with a opportunity for a large reward. Of course the markets have to provide some help but the loss will not be more than 7% or about 1.25 on either one of them and the reward could go as high 7/8 points. That's putting the" edge in your favor".

[skiracer]

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.

Ya know I don't have the slightest idea what either one of them do and didn't even look at the fundamentals on either one of them. Strictly the chart pattern on these two. I have found that a high percentage of them exhibiting this pattern do make the right side of their cup from this point. But also some don't and that is where controlling the trade and your emotions come into play. I will exit the trade in a heartbeat if it breaches my 7% stop loss rule and walk away with the loss and move on to the next setup. It's a matter of having a discipline and a plan and sticking to it regardless. They all do not work out as expected and your controlling the trade and your emotions is all that you have going for you. That is the difference between me and most others and between being successful and not. It is a matter of knowing exactly what you want to do and expect to do.

[IIC]

Ya know I don't have the slightest idea what either one of them do and didn't even look at the fundamentals on either one of them. Strictly the chart pattern on these two. I have found that a high percentage of them exhibiting this pattern do make the right side of their cup from this point. But also some don't and that is where controlling the trade and your emotions come into play. I will exit the trade in a heartbeat if it breaches my 7% stop loss rule and walk away with the loss and move on to the next setup. It's a matter of having a discipline and a plan and sticking to it regardless. They all do not work out as expected and your controlling the trade and your emotions is all that you have going for you. That is the difference between me and most others and between being successful and not. It is a matter of knowing exactly what you want to do and expect to do.

Well...I can't argue with that.

Anyway...To others...I think what we are trying to do on this thread is point out the different possibilties at different time frames with the pattern that you may be able to take advantage of...Good Discussion recently...Glad to see it...Best To All...Doug(IIC)

[IIC]

Here's one from our list yesterday...cup was not ideally rounded...but it did sort of have a double bottom thing going on altho the right side bottom was a bit low %-wise