Thanks, Doug
Thank you Doug for the education. I appreciate the definitions.
I would agree the bottom of the cup needs to be rounded. This one had too many spikes to be a classic cup with handle.
As always, I thank you for all you do. You are incredible!
Originally posted by IIC
There are varying definitions of what a Cup w/ Handle really is...Even IBD is not consistent in their descriptions.
Generally you want to see a run up of 30%+ to make the left side high...that's the main reason I question your CwH on this one. But, even though IBD says 30%...I just found some of their examples in their Q&A where this did not happen. That's also where BreakoutInvestor and I would disagree too(even though he posts many nice one's as I've mentioned before).
Here is an example of the IBD double talk:
http://www.investors.com/editorial/editorialcontent.asp?secid=1104&status=article&id= 132267040238219&secure=30&show=1
Now...the right side high should be within 10% of the left side high....Your's is good there. The handle should retrace on low vol no more than 50% of the difference between the right side high and the absolute bottom of the cup....You are fine there as far as retracement...but I was just looking at a monthly chart and the vol was too high during that time.
The bottom of the cup should not be steep...it should be rounded...your's is too steep.
Also, we have the vol thing which your chart does not show...While the bottom is forming the volume should be generally low...As the right side high is forming the volume should be above average. The downward part of the handle should form on lower volume until the upward movement when vol should be above avg until the "FLASH POINT"(Glad at least one person remembered that I changed the term PIVOT POINT last year
) is reached when vol should be at least 1.5x ADV.
Generally, the FLASH POINT is .10 above the right side high...But I consider it at .01 above.
Like I said...there are varying definitions and even some of the one's I post at Mr. B each week are a bit of a stretch. Therefore, I consider some to be "Classic" CwH's and others...well, I never came up w/ a name for those that are close.
You'll find some sites around the net (paid and unpaid) that offer CwH's...But, some take a pretty vivid imagination...Generally, if I can't see the pattern right off the bat I don't consider it a "Classic".
Well, that's my take...Sorry to nitpick...but you asked...doesn't mean your chart is not a good pattern...but it doesn't fall into my "Classic" category.
BTW...8 is EXCELLENT
Best, Doug(IIC)
Generally you want to see a run up of 30%+ to make the left side high...that's the main reason I question your CwH on this one. But, even though IBD says 30%...I just found some of their examples in their Q&A where this did not happen. That's also where BreakoutInvestor and I would disagree too(even though he posts many nice one's as I've mentioned before).
Here is an example of the IBD double talk:
http://www.investors.com/editorial/editorialcontent.asp?secid=1104&status=article&id= 132267040238219&secure=30&show=1
Now...the right side high should be within 10% of the left side high....Your's is good there. The handle should retrace on low vol no more than 50% of the difference between the right side high and the absolute bottom of the cup....You are fine there as far as retracement...but I was just looking at a monthly chart and the vol was too high during that time.
The bottom of the cup should not be steep...it should be rounded...your's is too steep.
Also, we have the vol thing which your chart does not show...While the bottom is forming the volume should be generally low...As the right side high is forming the volume should be above average. The downward part of the handle should form on lower volume until the upward movement when vol should be above avg until the "FLASH POINT"(Glad at least one person remembered that I changed the term PIVOT POINT last year

Generally, the FLASH POINT is .10 above the right side high...But I consider it at .01 above.
Like I said...there are varying definitions and even some of the one's I post at Mr. B each week are a bit of a stretch. Therefore, I consider some to be "Classic" CwH's and others...well, I never came up w/ a name for those that are close.
You'll find some sites around the net (paid and unpaid) that offer CwH's...But, some take a pretty vivid imagination...Generally, if I can't see the pattern right off the bat I don't consider it a "Classic".
Well, that's my take...Sorry to nitpick...but you asked...doesn't mean your chart is not a good pattern...but it doesn't fall into my "Classic" category.
BTW...8 is EXCELLENT
Best, Doug(IIC)
I would agree the bottom of the cup needs to be rounded. This one had too many spikes to be a classic cup with handle.
As always, I thank you for all you do. You are incredible!
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