Cup and Handle...

[sebfr]

Hi Joet and Thanks...

I was frustated because i am not Bullish...But since signal appeared, ANEN go down...Gap is filled -> bad news for "bulls" but GREAT news for "BEARS". My main problem about trading is sometimes (more before  ) i am not enough patient..This time, i am right.

YES i have shorted GLW at 23.50...With a stop-loss at 25.00 You know in this moment i am BEARISH. If i posted some bullish post it is because many traders want to buy stocks. I just hope to select good candidates for this strategy. I am open at any strategy and i like trading. I have my own strategy but i am open at others strategy.
I don't see any "Cup and handle" on GLW..I am sorry. Can you show me ?...Otherwise, you are right when you say "because it has a more established down trend, longer durationt". I play a swing tranding startegy called "Buy/Sell on pullback"..

We will see on ISIG but be careful, don't forget to put a stop-loss... ISIG is very volatile. Large gains is possible but large loss too. Do you have any money management plan ?

HPOL made a minor pullback. Volume is good. waiting for some days and see if it was a false start.

Good trades.
Cheers Seb

[sebfr]

FCSE 

[sebfr]

A great former Cup and handle...T :

[traderjbr]

DHCC long term uptrend looks like a cup n handle breakout today,looks like there's room up to 3.20 before resistance

[sebfr]

Great find traderjbr...I applaud you..

Have a look on BID

[traderjbr]

Nice thread here about Cup-N-Handle,it's one of the more difficult patterns for traders to interpret.I read a trading book written by a well known trader who totally missed the definition of the Cup-N-Handle.In that book the author refers to the C-N-H as a reversal pattern,when its a continuation pattern,also they show a chart with a rounded bottom that looks like a Cup-N-Handle but it followed a downtrend.I meant to write this author but I never got around to it.I used to make this same mistake until I read over and over everything in IBD's book and their website about the pattern.Stockcharts site makes it real clear as well,so when I think I spot this pattern the first thing I do is go to the 1yr chart and see the big picture,then you can count how many bases may have preceeded the pattern to see if its late or early in the trend.Once we are confident theres a uptrend in place leading to this formation,then we can break it down further comparing the left side vs right side,its handle,duration and so forth.So the most important rule to remember is: UPTREND before the start of the Cup.Sebfr you deserve the "applaud" for starting and sharing the true way to spot a C-n-H,you've shown many good examples here!Another good site that builds on IBD's teachings and has a list of Cup's and other patterns is Breakoutwatch.com,they have a nice learning center area thats pretty good for anyone wishing to brush up.Enough rambling,BID chart looks strong I see it as C-n-H ,which measures to around 39ish+-,just wish the period between June-July could of been a little  more smoothly rounded but it still looks valid to me,thanks for the tip.

[sebfr]

Thank you...You are right, BID could of been a little  more smoothly rounded..The problem is in reality, rare are "perfect" pattern as like they are in books...I am not a dogmatic person..The most important in a pattern definition : it must to please to you. If you don't have good feelings with it, follow another. That is why Technical analysis is also an "art". My philosophy about this site : take what you good with.

Thank you for the reference of the site : Breakoutwatch. I don't know it. Serious site are a good help. At each to decide the value of each analysis.

See you soon

[joet]

Howdie Sebfr
Not sure if this is the best place to post a ? but i wanted you and others to see it.

You seem to play stocks of all volumes.  Do you find that your TA works as well on the less liquid stocks as the big volume plays?  I see that some traders only play the big volume stocks and i am assuming that is because they are trading a large number of shares amd want to be able to exit quickly!?!

However if we are playing a smaller number of shers say 100-500 of a particular stock then it seems that extiting would still be possible relatively quickly.

Also do you ever look at enterprise value vs Market cap?
Take a look at FRN:  http://finance.yahoo.com/q/ks?s=FRN
It has been channeling between $8 and $11 and could be ripe for a short, but with such a high enterprise value the short appears too risky...  also see the 2yr chart...  THoughts?

Thank you for your posts!
Cheers Joe

[sebfr]

Thank you joet...And thank you for the link...

Does volume is important ? Of course ! I like liquid stock fro three reasons :
1. less easy to manipulate them
2. Low spread between ask and bid
3. Entry quickly and exit quickly = it depends of course of the number of shares

But, each trader is unique and i have my own criteria. Moreover, i put posts that it doesn't go with my strategies but it could serve others...There are so great tactics...Find good strategy is enough easy but follow strategies and trade with a good money management is more difficult.

Personnally, now, i d'ont trade penny stock and stocks with an average volume less of 10000. Even if my capital is > 100000$ my strict money management rules permit me to have few shares at each time so i just forget extreme situation.

[sebfr]

Can we predict cup and  handle I don't know...But i am going to play at this game with MTEX...

It seems that MTEX is forming the handle..Trendline as resistance and volume is more low near resistance.

Strategy :
1. Sell now at 17.87. profit target at 15 - 15.5.
2. buy at 15.5. (50% retracement)

[D&Data]

hi Seb,
could you say me if I'm ok with my analyse...

Thanks,
Id...

[sebfr]

Hi Idfix  ...Thank you for ask me my help on this chart...

Sorry but i don't see a "cup and handle" pattern oh this chart...Why ?

1. We are not a major Uptrend. We can just see for the moment a pullback after the big downtrend.
2. There is no left side of the cup ! Most important...The left side of the cup MUST BE an uptrend. Or there is a downtrend on the chart..

Wait for a triangle breakout..

Good trade and nice day !

[D&Data]

Hi Seb...
Thanx for your analyse...
There's a symetrical triangle on the other side... perhpas good also !

I'm watching better now,

Id...

[joet]

Howdie Sebrf

I believe this has been posted but i will re-post because it is helpful:  http://stockcharts.com/education/ChartAnalysis/cupHandle.html

If you have time could you look at GNBT,  I believe the cup was May 11 to oct 10 of this year and the handle the past 4 sessions.  This handle is probably too short but watch for the break over 2.44
I believe that it is important for the formation for the handle to slope down.  (not in MTEX but maybe another formation, rounding bottom??)

You may say that GNBT is not in an up trend, so not a C+H but in looking at the 2 year chart we are in an up trend and take out the big spike from Feb to June the trend is good and we are now over Terliso's 3 magics

Curious to hear your thoughts.  Thanx for the reply on GS, just playing for a pull-back.

BITS is also forming a Beautiful Cup handle enter if it breaks 10.37 !?!?!?!? 6 month cup! 3 week handle... 

do earnings play into your trades, some never hold through them, some like them?  Curious  I have had them go both ways so no personal rule yet

Great weekend to ya  Cheers Joe

[sebfr]

Hi joet,

and i applaud you for your last post on this topic..

Indeed, when we are looking at the 2 year chart of GNBT it could be a "Cup and handle" or a "rounding bottom"... ;)We have a filled black candle the last week...Perhaps a retracement near 1.90 could appear. In this chart i see a symetrical triangle breakout -> good sign for bullish strategy..Wait for a pullback near the breakout...It is a possible good entry. Or wait for the trendline breakout...

I like "Stockcharts.com" but in the example they showed at the link you post i don't see any uptrend before the cup...Perhaps my view is too short. I prefer to see an ascending triangle.

on GS we have a "rounding bottom" pattern.

GITS -> great find  But for me "cup and handle" was formed on september (red circle) as you can see on chart But it seems to be a good stock to buy. Trendline (red) as support and good volume. GITS is ready for a a new wave of highs. Trendline as a stop-loss zone.

There are many ways to find winning strategy in stock market. You can use Fundamental analysis (play pre-announcements earnings or insider moves or...) or technical analysis or mix two analysis...Personnaly, i use technical analysis not because it is a unique way to be a winner trader but because this analysis correspond to my personnality. Sometimes, specially in short-term strategy, i have a look on earning meetings. But i am curious and i like to be a trader. So i post several strategies for help people.

Great weekend to you
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