From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #1155 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk Content-Transfer-Encoding: quoted-printable X-No-Archive: yes canslim-digest Friday, February 23 2001 Volume 02 : Number 1155 In this issue: Re: [CANSLIM] Rational Software Re: [CANSLIM] bcf Opinions, M, M, M!! Re: [CANSLIM] Off topic - AOL question RE: [CANSLIM] Off topic - AOL question RE: [CANSLIM] O'Neil Follow Through Day Re: [CANSLIM] More Spam lately??? Re: [CANSLIM] EASI Re: [CANSLIM] M Re: [CANSLIM] EASI Re: [CANSLIM] [canslim] More Spam lately??? Re: [CANSLIM] Rational Software Re: [CANSLIM] Reasons not to buy (PLT) Re: [CANSLIM] [canslim] More Spam lately??? [CANSLIM] ALSI Re: [CANSLIM] Stops Re: [CANSLIM] Stops Re: [CANSLIM] ALSI Re: [CANSLIM] EASI Re: [CANSLIM] Stops Re: [CANSLIM] M [CANSLIM] remove Re: [CANSLIM] Off topic - AOL question Staying on topic (was Re: [CANSLIM] [canslim] More Spam lately???) Re: [CANSLIM] O'Neil Follow Through Day EME and selling rules (was Re: [CANSLIM] EASI) ---------------------------------------------------------------------- Date: Thu, 22 Feb 2001 19:36:29 -0700 From: esetser Subject: Re: [CANSLIM] Rational Software At DGO, 57/52/EAAC (the last letter is timeliness) At 06:52 PM 2/22/01 -0500, you wrote: > >Could someone give me some basic Canslim numbers and their thoughts on RATL. >I realize there is no chart patern on this one. I just like the fact that >it is a mover and is approaching solid support (if that exists in this >market). > >It also seems to have good ROE and decent margin. > >Thanks > >Erik > > >- > > > - - ------------------------------ Date: Thu, 22 Feb 2001 19:40:48 -0700 From: esetser Subject: Re: [CANSLIM] bcf Opinions, M, M, M!! Whoops, I meant "not" buy this stock right now. At 07:00 PM 2/22/01 -0700, you wrote: >I guess I should respond to one of these questions. Based on my >interpretation of CANSLIM, (or sometimes referred to herein at MANSLIC to >put the most important part first!), I believe you should buy this stock >right now... or any stock right now. I only wonder why I didn't take my >profits on my 2 remaining holdings a few days ago!! I don't see anything >in M to make me think new purchases now are a good idea. To be more >specific, we have taken out near-term lows on both the NAS and S&P in the >last 2 days. Maybe a short candidate or two would work?? > > >At 10:30 PM 2/21/01 -0500, you wrote: >>I got this one from www.stockmaster.com . There is a guru analysis section >>and you can select W. O'Neil. At this point, I see a cup (April - Sept), a >>handle (Sept- Dec) followed by a raise (Dec - Jan1) and then consolidation >>(Jan1 - Now). >> >>I figure I should be waiting for a raise in volume and a breakout but, >> >>1) Am I too late? >>2) I am concerned because the company has not been doing well (Should that >>be a concern?) >> >>Thanks >> Gary >> >> >> >>- >> >> >> > >- > > > - - ------------------------------ Date: Thu, 22 Feb 2001 22:11:17 EST From: BONESTIM7@aol.com Subject: Re: [CANSLIM] Off topic - AOL question - --part1_52.7990f58.27c72ed5_boundary Content-Type: text/plain; charset="US-ASCII" Content-Transfer-Encoding: 7bit THANKS FOR THE HELP. - --part1_52.7990f58.27c72ed5_boundary Content-Type: text/html; charset="US-ASCII" Content-Transfer-Encoding: 7bit THANKS FOR THE HELP. - --part1_52.7990f58.27c72ed5_boundary-- - - ------------------------------ Date: Thu, 22 Feb 2001 22:28:56 -0500 From: "Rick Parsons" Subject: RE: [CANSLIM] Off topic - AOL question You are right, AOL is very inflexible. AOL email is way behind the times. There was an article that said AOL rates below the Government in customer satisfaction. And you know how low the gov't rates! AOL is the worlds largest ISP...not because it is a great product, but because they are great at marketing. They saturate free AOL CD ROMs everywhere. Unfortunately, AOL will not support 3rd party email programs like Outlook or Outlook Express. I however do have AOL only because when I travel in the US, there is always a local number to dial up to access the internet. Also when I travel internationally, I can always get on the AOL home page thru a local internet cafe and get my AOL email. At home I have a cable modem and use Outlook for email. In order to get my email when I travel, I have Outlook forward my messages to my AOL account. Rick - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Erik Harris Sent: Thursday, February 22, 2001 7:05 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] Off topic - AOL question Hey Jeff, I don't have AOL but was at a friend's house this weekend trying to filter his Canslim email into another "mail folder". (as has been discussed on this board recently). After close to 1 hour online with AOL tech support we decided that it couldn't be done. To me AOL's email seemed very inflexable. Based on my poking around with AOL's email help, I would say that it would not be able to automatically forward email. It didn't have much capability in the way of automatically doing anything. Again, I don't use AOL. Hopefully someone out there who uses it will respond. Erik - ----- Original Message ----- From: Jeff Salisbury To: Sent: Thursday, February 22, 2001 11:36 AM Subject: [CANSLIM] Off topic - AOL question > Hello everyone, > > I have a question for you AOL users. An associate of mine has been with > AOL but is now planning to dump them for another provider. Can AOL > email accounts be configured to automatically forward his AOL mail to > his new non-AOL mail account? If so, can he control this -- or, will he > have to enlist AOL tech support? > > Regards, > > Jeff > > - > > - - - - ------------------------------ Date: Thu, 22 Feb 2001 22:36:35 -0500 From: "Rick Parsons" Subject: RE: [CANSLIM] O'Neil Follow Through Day Let's look for an O'Neil follow thru day. This occurs when a major index advances by more than 1% within 4 to 10 days of a closing low on increased volume from the prior trading session. The first three days of the rally are ignored unless all three days are up more than 1% on successively higher volume. The most powerful signals occur four to seven days off the closing low. Signals more than 10 days off the closing low are prone to failure. Comments? - - ------------------------------ Date: Thu, 22 Feb 2001 19:16:30 -0800 From: Dan Subject: Re: [CANSLIM] More Spam lately??? Thanks for the suggestion on faked headers. Tim Fisher wrote: > If it really bothers you, filter it. All the redirected spam can be killed > with filters for foreign domains, i.e. "if contains .cr .kr > .cn etc. then transfer to trash" (that was for Eudora; dunno how to do it > in Mr Softee products). Also "nobody@localhost.localdomain" nails the > messages with faked headers. The only problem occurs if you get legitimate > mail from the spamming countries, which I don't, so it's not a problem for me. > > On 08:08 AM 2/22/01, Dave Rubin Said: > >Sorry to be a pessimist, but it's probably not worth the effort to try to > >stop the spam. Most spammers are fairly immune to abuse reports, since they > >can jump from server to server. For every mail server that is properly > >secured, there are dozens if not hundreds of others that are left wide open > >to be hijacked by spammers. > > > >I agree with Rick that attempting to remove yourself from the list in the > >advertised manner will most likely result in more spam, not less. > > > >Until the Internet at large comes up with a solution to this growing > >problem, you're probably going to have to get used to hitting the delete > >key. > > > >As for increased spam to members of this list, It is quite possible that one > >or more spammers subscribe to the list, then scan the messages for E-mail > >addresses to add to their collection. It's an unfortunate side-effect to > >public mailing lists. > > > >If it really bothers you, you might consider creating a new E-mail address > >for yourself at one of the free sites such as Yahoo or Mail.com. Use this > >address exclusively for mailing lists. When the spam reaches uncomfortable > >levels, create a new address and change your list subscriptions to the new > >address. > > > >Personally I find it easier to hit the delete key ;) > > > >-- > >Dave > > > > > -----Original Message----- > > > From: owner-canslim@lists.xmission.com > > > [mailto:owner-canslim@lists.xmission.com]On Behalf Of Dan > > > Sent: Thursday, February 22, 2001 10:23 AM > > > To: canslim@lists.xmission.com > > > Subject: Re: [CANSLIM] [canslim] More Spam lately??? > > > > > > > > > Rick, > > > > > > Tried that, but didn't seem to make any difference. Volume is > > > dropping off. > > > None this am, so far, and that is new. None from china, denmark, > > > germany or > > > costa rica or korea for a couple of days. Just unbelievable. I > > > do believe > > > reporting to the webmaster, postoffice, abuse addresses of the > > > isp makes a > > > difference. > > > > > >- > > Tim Fisher > Ore-Rock-On and Pacific Fishery Biologists WWW Sites > > Tim@OreRockOn.com > WWW: http://OreRockOn.com > See naked fish and rocks! > > - - -- Dan Replace ? with dcash to reply Kibosh spam: http://spamcop.net/ - - ------------------------------ Date: Thu, 22 Feb 2001 22:46:03 EST From: Vanchee1@aol.com Subject: Re: [CANSLIM] EASI - --part1_9a.1076588a.27c736fb_boundary Content-Type: text/plain; charset="US-ASCII" Content-Transfer-Encoding: 7bit I sold on Tues. to take a profit. Was hoping for a pullback to 32.5 to 33 and buy back in, but wed it continued up. Still hoping for it to pull back so I can get back in. Chris. - --part1_9a.1076588a.27c736fb_boundary Content-Type: text/html; charset="US-ASCII" Content-Transfer-Encoding: 7bit I sold on Tues. to take a profit. Was hoping for a pullback to 32.5 to 33 and
buy back in, but wed it continued up. Still hoping for it to pull back so I
can get back in.

Chris. - --part1_9a.1076588a.27c736fb_boundary-- - - ------------------------------ Date: Thu, 22 Feb 2001 22:03:29 -0700 From: "Patrick Wahl" Subject: Re: [CANSLIM] M On 22 Feb 01, at 20:17, Tom Worley wrote: > Heck, Naz took out the Dec 1998 low (111 week low, 2 years!!) On CNBC yesterday, they pointed out that the NASDAQ has hit a two year low only 4 times, and then they gave the returns for a few different periods of time after that has happened. Don't remember the exact numbers for the short time frames, only a few percent, but the average return 1 year after the 2 year low was hit is 30%. So if history is any guide, we could be in for a good rally. - - ------------------------------ Date: Thu, 22 Feb 2001 21:26:37 -0800 (PST) From: Maninder Subject: Re: [CANSLIM] EASI Hi Tim and other experts of canslim I have a similar but a genral question on selling. I mentioned a few weeks ago that I picked up my first canslim stock, EME (EMCOR Group) when it broke at 28, and I bought it at that price. Can people give me general CANSLIM ideas on what to look for as a selling sign. The M is making me very nervous. It would be nice if everyone who has ideas on canslim rules on selling respond so that the novices like me learn this important aspect. Regards to everyone. Maninder - --- Tim Fisher wrote: > My opinion on EASI is biased, since I bot rather high, in a non-CANSLIM > fashion, but I see no reason to exit this stock based on its trading range > yesterday. So what if it didn't close at the high? M brought it down and it > still managed the second stage B/O with aplomb. The only reason to exit is > to preserve profits, if you dumped it with a profit, you were being prudent > given M. Show me the selling rules from HTMMIS that justify selling based > on the fact that a stock hit an all-time high and couldn't close there the > same day. > > Just my $0.03 CAN > > Tim Fisher __________________________________________________ Do You Yahoo!? Yahoo! Auctions - Buy the things you want at great prices! http://auctions.yahoo.com/ - - ------------------------------ Date: Thu, 22 Feb 2001 21:33:15 -0800 (PST) From: Maninder Subject: Re: [CANSLIM] [canslim] More Spam lately??? Hi Everyone, I have a humble suggestion. I am sure we all have extremely busy lives, an dnot enough time to read e-mails. Still many of us take precious time to go through canslim mail in order to learn more about this method. Wont it be a good idea if we restrict the discussion on canslim. Sometimes it seems like there are more mails on issues such as why some people are quitting, or mechanism of spam mail functioning. I am sure those issues are very entertaining, but they are likely to dilute the true essence of this group. Once again, it is my hmble iopinion, and I am relatively new to the group, I di not intend to hurt anyone's feelings. Regards Maninder __________________________________________________ Do You Yahoo!? Yahoo! Auctions - Buy the things you want at great prices! http://auctions.yahoo.com/ - - ------------------------------ Date: Thu, 22 Feb 2001 21:40:18 -0800 (PST) From: Maninder Subject: Re: [CANSLIM] Rational Software Let me make my 2c worth attempt. The chart shows it to be deep inside its base, so from that point it is no way ready. IBD ratings are 76/53/77/EAA, so has poor canslim charcatreistics, except for Sales+Margins rating and A/D rating. I would personally not be buyer of this at this time. Maninder -- Erik Harris wrote: > > Could someone give me some basic Canslim numbers and their thoughts on RATL. > I realize there is no chart patern on this one. I just like the fact that > it is a mover and is approaching solid support (if that exists in this > market). > > It also seems to have good ROE and decent margin. > > Thanks > > Erik > > > - > __________________________________________________ Do You Yahoo!? Yahoo! Auctions - Buy the things you want at great prices! http://auctions.yahoo.com/ - - ------------------------------ Date: Thu, 22 Feb 2001 21:54:18 -0800 From: Dan Subject: Re: [CANSLIM] Reasons not to buy (PLT) There is a short spaced double top on the 18th and 31st of Jan. I would hopefully have waited for a breakout and resolution of that and if that had happened, my indicators were ok, not exciting. But by the 6th of Feb., they had deteriorated so much that I would not have been at all interested on the long side. And the price closed below the 50 ema a day later, a rather alarming development of negative strength and direction change. Rapid deterioration. Also if you look back a bit, to Aug. 15th and Sept. 9, there is another complex of double tops. If one draws a line across the two sets, one could see that as major resistance that needed to be resolved decisively upward for a buy; it surely has been resolved, now for the time being. And one last point, MACD developed a decisive divergence with descending peaks between the two sets of double tops. As far as CANSLIM, I cannot address this. Wish I had been watching it. Quite interesting. Anyway this is my take on it with my lenses. Erik Harris wrote: > Wanted to throw this out for discussion. > > When I see a decent Canslim stock (fundamentally) get "annihilated" like > Plantronics (PLT) did last week, I try to determine what would have kept me > out of the stock. In addition, I had been watching this stock for two weeks > prior and was very happy that I had been busy with work (hope none of you > were overweighted in this one). > > Anyway, I would be interested in hearing comments. > > In this case, an earnings warning was the culprit so the O'Neil caution > about purchasing before earnings is now written in my mind. But what if > you're in the stock? > > I suppose this stock is a good case for hard stops. > > Erik > > - - -- Dan Replace ? with dcash to reply Kibosh spam: http://spamcop.net/ - - ------------------------------ Date: Thu, 22 Feb 2001 21:57:06 -0800 From: Dan Subject: Re: [CANSLIM] [canslim] More Spam lately??? With judicious and descriptive use of the subject line, we can all delete easily that which does not interest us. Maninder wrote: > Hi Everyone, > > I have a humble suggestion. I am sure we all have extremely busy lives, an > dnot enough time to read e-mails. Still many of us take precious time to go > through canslim mail in order to learn more about this method. Wont it be a > good idea if we restrict the discussion on canslim. Sometimes it seems like > there are more mails on issues such as why some people are quitting, or > mechanism of spam mail functioning. I am sure those issues are very > entertaining, but they are likely to dilute the true essence of this group. > > Once again, it is my hmble iopinion, and I am relatively new to the group, I di > not intend to hurt anyone's feelings. > > Regards > > Maninder > > __________________________________________________ > Do You Yahoo!? > Yahoo! Auctions - Buy the things you want at great prices! http://auctions.yahoo.com/ > > - - -- Dan Replace ? with dcash to reply Kibosh spam: http://spamcop.net/ - - ------------------------------ Date: Thu, 22 Feb 2001 22:14:50 -0800 (PST) From: Maninder Subject: [CANSLIM] ALSI As much as I am scared of the market right now, I am tempted to follow Wednesday Stock in the News in IBD, Advantage Learning System (ALSI). Except for industry group Strength as D, every other CANSLIM properties look good. Does the February action looks like a downward slanting handle with low colume ? Does that mean that If it explodes past 37-38 (pivot ?) range, it is a buy signal ? How do folks feel about this one ? Maninder __________________________________________________ Do You Yahoo!? Yahoo! Auctions - Buy the things you want at great prices! http://auctions.yahoo.com/ - - ------------------------------ Date: Thu, 22 Feb 2001 22:17:25 -0800 (PST) From: John Subject: Re: [CANSLIM] Stops - --- Maninder wrote: > Can people give > me general CANSLIM ideas on > what to look for as a selling sign. The M is making > me very nervous. It would > be nice if everyone who has ideas on canslim rules > on selling respond so that > the novices like me learn this important aspect. Maninder, I think that the most important piece of advice I can give you is that you need to have you selling rules figured out before you need them. I personally use mental stops when I can watch during the day and actual stops when I travel. There is the wonderful idea that one can put a stop at a place where it will quickly protect one from a loss, but will not be tripped by normal volatility. My experience has been that there is no such place. The best that I have been able to do is to place stops that sometimes get tripped by volatility and always give up a lot of potential profit. I wish it was not so, but that has been my experience. I also will give the standard complaint that the Market Makers will often "run the stops" to make a quick profit. This is my reason for using mental stops most of the time. In this market I have been using trailing stops set 1.5 times the Average True Range below the highest high (since I bought it). In a strong up market I use 3.5 x ATR. That ends up being about 6% and 14% for a typical stock. To remake my point above, that means in good times I give back 14% of the potential gain before the stop trips! If anybody has a better system, I would certainly like to here it. BTW The above system has me now in only two stocks, vs a normal 15 or 20. John __________________________________________________ Do You Yahoo!? Yahoo! Auctions - Buy the things you want at great prices! http://auctions.yahoo.com/ - - ------------------------------ Date: Thu, 22 Feb 2001 22:27:22 -0800 (PST) From: Maninder Subject: Re: [CANSLIM] Stops Hi John Thanks for this valuable advice. Could you explain the Average True Range a little more, possibly with an example ? Maninder > In this market I have been using trailing stops set > 1.5 times the Average True Range below the highest > high (since I bought it). In a strong up market I use > 3.5 x ATR. That ends up being about 6% and 14% for a > typical stock. To remake my point above, that means > in good times I give back 14% of the potential gain > before the stop trips! __________________________________________________ Do You Yahoo!? Yahoo! Auctions - Buy the things you want at great prices! http://auctions.yahoo.com/ - - ------------------------------ Date: Fri, 23 Feb 2001 01:47:42 -0800 From: "Ed Wile" Subject: Re: [CANSLIM] ALSI Hey, Now I've been trading for less than a year...so I don't want to be too harsh about this but: If that's you're definition of a "handle" (I'm assuming that you are referring to the February drop from about 37-30) then you need to study a bit more. That is a full out down-trend. ALSI hit resistance in the 36-38 area and has fallen to support at the 29-31 area, right at it's 50 day ma. Technically, not a terrible buy point...if the support holds. But understand that would not be a CANSLIM buy point...of course this is not a canslim stock right now anyway (Sector=D) The "Handle" forming is really the manifestation of the absorbtion of the overhead supply that is being offered. When all the supply has been absorbed, the stock can break out. ALSI did not "absorb" the supply...it got swamped by it!! Lets see if demand can regain control at support. Ed - - ------------------------------ Date: Thu, 22 Feb 2001 23:52:08 -0800 From: "Mike Lucero" Subject: Re: [CANSLIM] EASI I have been using sell stops for a long time instead of WON's selling rules, partly because it's easier, and partly because I'm having trouble using Technifilter to confirm WON's sell rules. But I'm working on it. This year (or maybe next if it takes that long to turn) I'm going to try to using the rules while keeping the sell stops for safety. Here are some selling rules that I think may apply: 3. If after a stock's price is extended from a proper base, its price closes for a larger increase than on any previous up days, watch out! This move usually occurs at or very close to a stock's peak. [If it had closed at it's high, it would have met this criterion. I think closing in the middle of the range is worse.] 4. The ultimate top may occur on the heaviest volume day since the beginning of the advance. [We're getting pretty big volume.] 5. Sell if a stock advance gets so active that it has a rapid price runup for two or three weeks (eight to twelve days). This is called climax (blow-off) top activity. [It just had a runup of 7 higher closes in a row, just before earnings came out.] 7. Big investors must sell when they have buyers to absorb their stock; therefore, consider selling if a stock runs up and then good news or major publicity (a cover article in Business Week, for example) is released. [Would a "good" earnings report count? Sales growth was really poor, though.] 12. If a stock that has been advancing rapidly is extended from its base and opens on a gap up in price, the advance is probably near its peak. [2/20? This could be viewed as a huge base starting back in 5/98 with a pivot around 20. It's extended.] 34. Some stocks can be sold when they are 70% to 100% above their 200-day moving average price line. [2/21's high was at twice the 200dma.] Mike - ----- Original Message ----- From: "Maninder" To: Sent: Thursday, February 22, 2001 9:26 PM Subject: Re: [CANSLIM] EASI Hi Tim and other experts of canslim I have a similar but a genral question on selling. I mentioned a few weeks ago that I picked up my first canslim stock, EME (EMCOR Group) when it broke at 28, and I bought it at that price. Can people give me general CANSLIM ideas on what to look for as a selling sign. The M is making me very nervous. It would be nice if everyone who has ideas on canslim rules on selling respond so that the novices like me learn this important aspect. Regards to everyone. Maninder - --- Tim Fisher wrote: > My opinion on EASI is biased, since I bot rather high, in a non-CANSLIM > fashion, but I see no reason to exit this stock based on its trading range > yesterday. So what if it didn't close at the high? M brought it down and it > still managed the second stage B/O with aplomb. The only reason to exit is > to preserve profits, if you dumped it with a profit, you were being prudent > given M. Show me the selling rules from HTMMIS that justify selling based > on the fact that a stock hit an all-time high and couldn't close there the > same day. > > Just my $0.03 CAN > > Tim Fisher __________________________________________________ Do You Yahoo!? Yahoo! Auctions - Buy the things you want at great prices! http://auctions.yahoo.com/ - - - - ------------------------------ Date: Fri, 23 Feb 2001 00:41:40 -0800 (PST) From: John Subject: Re: [CANSLIM] Stops - --0-800993505-982917700=:12157 Content-Type: text/plain; charset=us-ascii I use MetaStock as my charting program and it calculates ATR for me. (I think Bigcharts will calculate it also). If I had to do it by hand, I wouldn't use it. Metastock list the formula as: Calculation The True Range indicator is the greatest of the following: The distance from today's high to today's low. The distance from yesterday's close to today's high. The distance from yesterday's close to today's low. The Average True Range is a moving average (typically 14-days) of the True Ranges. (from http://www.equis.com/free/taaz/avertrurang.html ) I have also used moving averages. One repeatedly redraws the chart using shorter and shorter moving averages until one finds one that lays up against the price graph in a way that suits one. This works well for trending stocks and trading range stocks, but isn't very satisfactory (in my opinion) for handles and breakouts. Regardless of what I am using, I always draw a horizontal line on the chart at the price of the stop and then adjust it based upon what is nearby. If there is obvious support close by, I will move the stop below it. I try very hard never to move a stop lower once it has been set. The few exceptions have been when I convinced myself (or deluded myself) that the stock had only fallen because the market had fallen, and the market had only fallen because of some external that was transient. About half the time I later regretted moving it. My only real point is to make sure that you have a rational idea of a price at which you will sell your stocks. I am sure that there are people out there that bought SUNW at its high and still hold it today, because each day as it went down they told themselves it would surely go up soon. Stocks only have to stop going down when they reach zero -- and it happens. John - --- Maninder wrote: > Hi John > > Thanks for this valuable advice. Could you explain > the Average True Range a > little more, possibly with an example ? > > Maninder > > > In this market I have been using trailing stops > set > > 1.5 times the Average True Range below the highest > > high (since I bought it). In a strong up market I > use > > 3.5 x ATR. That ends up being about 6% and 14% > for a > > typical stock. To remake my point above, that > means > > in good times I give back 14% of the potential > gain > > before the stop trips! > > __________________________________________________ > Do You Yahoo!? > Yahoo! Auctions - Buy the things you want at great > prices! http://auctions.yahoo.com/ > > - > - --------------------------------- Do You Yahoo!? Yahoo! Auctions - Buy the things you want at great prices! - --0-800993505-982917700=:12157 Content-Type: text/html; charset=us-ascii

I use MetaStock as my charting program and it calculates ATR for me. (I think Bigcharts will calculate it also).  If I had to do it by hand, I wouldn't use it.  Metastock list the formula as:


Calculation


The True Range indicator is the greatest of the following:



  • The distance from today's high to today's low.



  • The distance from yesterday's close to today's high.



  • The distance from yesterday's close to today's low.


The Average True Range is a moving average (typically 14-days) of the True Ranges.


(from http://www.equis.com/free/taaz/avertrurang.html )


I have also used moving averages.  One repeatedly redraws the chart using shorter and shorter moving averages until one finds one that lays up against the price graph in a way that suits one.  This works well for trending stocks and trading range stocks, but isn't very satisfactory (in my opinion) for handles and breakouts.


Regardless of what I am using, I always draw a horizontal line on the chart at the price of the stop and then adjust it based upon what is nearby.  If there is obvious support close by, I will move the stop below it.


I try very hard never to move a stop lower once it has been set.  The few exceptions have been when I convinced myself (or deluded myself) that the stock had only fallen because the market had fallen, and the market had only fallen because of some external that was transient.  About half the time I later regretted moving it.


My only real point is to make sure that you have a rational idea of a price at which you will sell your stocks.  I am sure that there are people out there that bought SUNW at its high and still hold it today, because each day as it went down they told themselves it would surely go up soon.  Stocks only have to stop going down when they reach zero -- and it happens.


John





--- Maninder <mani0101@yahoo.com> wrote:
> Hi John
>
> Thanks for this valuable advice. Could you explain
> the Average True Range a
> little more, possibly with an example ?
>
> Maninder
>
> > In this market I have been using trailing stops
> set
> > 1.5 times the Average True Range below the highest
> > high (since I bought it). In a strong up market I
> use
> > 3.5 x ATR. That ends up being about 6% and 14%
> for a
> > typical stock. To remake my point above, that
> means
> > in good times I give back 14% of the potential
> gain
> > before the stop trips!
>
> __________________________________________________
> Do You Yahoo!?
> Yahoo! Auctions - Buy the things you want at great
> prices! http://auctions.yahoo.com/
>
> -
>


Do You Yahoo!?
Yahoo! Auctions - Buy the things you want at great prices! - --0-800993505-982917700=:12157-- - - ------------------------------ Date: Fri, 23 Feb 2001 06:26:48 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] M Of course, 30% would be nice, but would only take us to around 2900, leaving us still nearly 50% below the high! It gets tougher when you have fallen so far. Tom Worley stkguru@netside.net ICQ # 5568838 - ----- Original Message ----- From: Patrick Wahl To: Sent: Friday, February 23, 2001 12:03 AM Subject: Re: [CANSLIM] M On 22 Feb 01, at 20:17, Tom Worley wrote: > Heck, Naz took out the Dec 1998 low (111 week low, 2 years!!) On CNBC yesterday, they pointed out that the NASDAQ has hit a two year low only 4 times, and then they gave the returns for a few different periods of time after that has happened. Don't remember the exact numbers for the short time frames, only a few percent, but the average return 1 year after the 2 year low was hit is 30%. So if history is any guide, we could be in for a good rally. - - - - ------------------------------ Date: Fri, 23 Feb 2001 06:41:13 -0500 From: LARRY MCGINN Subject: [CANSLIM] remove remove - - ------------------------------ Date: Fri, 23 Feb 2001 07:06:58 EST From: SKutney@aol.com Subject: Re: [CANSLIM] Off topic - AOL question - --part1_89.2c1d060.27c7ac62_boundary Content-Type: text/plain; charset="US-ASCII" Content-Transfer-Encoding: 7bit When using 6.0 you can press the "button" on the bottom of your e-mail screen on AOL to save your e-mail to a folder. I don't think that's exactly what has been described on how to save e-mail on various other posts. As an AOL user I really doubt that AOL will forward e-mail. Why should they? If you switch from AOL they just lost a customer. Steve Kutney - --part1_89.2c1d060.27c7ac62_boundary Content-Type: text/html; charset="US-ASCII" Content-Transfer-Encoding: 7bit When using 6.0 you can press the "button" on the bottom of your e-mail screen
on AOL to save your e-mail to a folder. I don't think that's exactly what has
been described on how to save e-mail on various other posts.

As an AOL user I really doubt that AOL will forward e-mail. Why should they?
If you switch from AOL they just lost a customer.

Steve Kutney    - --part1_89.2c1d060.27c7ac62_boundary-- - - ------------------------------ Date: Fri, 23 Feb 2001 07:10:12 -0500 From: "Tom Worley" Subject: Staying on topic (was Re: [CANSLIM] [canslim] More Spam lately???) Hi Maninder, What you suggest sounds good in theory, but doesn't work. While this is a CANSLIM group, it is unmoderated. As a member for over four years, I have both often complained that we stray from CANSLIM, while also being guilty of so straying. More importantly, I am guilty of failing to make sure the subject line is clear as to content, esp lately. As one member pointed out, we all need to watch the subject line. Then others can delete what does not interest them. I have also found that off-topic material is often quite on topic. For example, if the recent discussion on SPAM permits me a more efficient way of disposing of this garbage, then I have more time to dedicate to answering, or writing, CANSLIM email or studying charts. Likewise, discussion of using stops, or when to sell, is very much on topic. Discussions of what computer charting services others use is useful to many members. Likewise, how to screen for candidates. CANSLIM seems simple enough on the surface, but when it comes to practical application, we are all still learning. There are no experts here. I read every email I receive from this group, as well as everything else I get from other sources (except the SPAM). Takes time, but I often learn something that is useful. I did remember this time to change the subject line :)) Tom Worley stkguru@netside.net ICQ # 5568838 - ----- Original Message ----- From: Maninder To: Sent: Friday, February 23, 2001 12:33 AM Subject: Re: [CANSLIM] [canslim] More Spam lately??? Hi Everyone, I have a humble suggestion. I am sure we all have extremely busy lives, an dnot enough time to read e-mails. Still many of us take precious time to go through canslim mail in order to learn more about this method. Wont it be a good idea if we restrict the discussion on canslim. Sometimes it seems like there are more mails on issues such as why some people are quitting, or mechanism of spam mail functioning. I am sure those issues are very entertaining, but they are likely to dilute the true essence of this group. Once again, it is my hmble iopinion, and I am relatively new to the group, I di not intend to hurt anyone's feelings. Regards Maninder __________________________________________________ Do You Yahoo!? Yahoo! Auctions - Buy the things you want at great prices! http://auctions.yahoo.com/ - - - - ------------------------------ Date: Fri, 23 Feb 2001 06:14:45 -0600 From: "David Squires" Subject: Re: [CANSLIM] O'Neil Follow Through Day Hi Rick, I agree, this is what you should be doing now....waiting and watching. Waiting for a FT day and watching for setups. Many people on this list seem to have forgotten that CS is top down approach. If the market is not a go, and it hasn't been since September 1 2000, money market yields are the right place for your money. Anyone who feels the need to gamble on the long side with a MONTHLY, WEEKLY and daily downtrend in place on the NASDAQ should play small, look for much smaller gains and reduce stop losses to 3-5% from purchase price. Good Trading, Dave Squires - ----- Original Message ----- From: "Rick Parsons" To: Sent: Thursday, February 22, 2001 9:36 PM Subject: RE: [CANSLIM] O'Neil Follow Through Day > Let's look for an O'Neil follow thru day. This occurs when a major index > advances by more than 1% within 4 to 10 days of a closing low on increased > volume from the prior trading session. The first three days of the rally > are ignored unless all three days are up more than 1% on successively higher > volume. The most powerful signals occur four to seven days off the closing > low. Signals more than 10 days off the closing low are prone to failure. > > Comments? > > > - > - - ------------------------------ Date: Fri, 23 Feb 2001 07:52:02 -0500 From: "Tom Worley" Subject: EME and selling rules (was Re: [CANSLIM] EASI) Hi Maninder, You already got several excellent responses, so I will just add a further idea, one you won't find in HTMMIS but I culled from this group several years back. When I enter a stock, I set a mental target using the range created by 2X the 200 DMA and 1.5X the 50 DMA. This is strictly a target, I do not enter sell limit orders on its basis. But when I have a winner, and trying to decide when to take money off the table, I will reevaluate and calculate the target based on then current 50 and 200 DMA (e.g. as it approaches my target). I may keep the target, or I may raise it. I combine this with a trailing 15% stop from the daily high (if I am watching closely) or a trailing stop of 15% from the closing price (if not watching closely). BTW members, in addition to changing the subj line as I did here, you can also snip off the portions of the thread that no longer pertain (in this case discussion had turned to EME and selling rules). Tom Worley stkguru@netside.net ICQ # 5568838 - ----- Original Message ----- From: Maninder To: Sent: Friday, February 23, 2001 12:26 AM Subject: Re: [CANSLIM] EASI Hi Tim and other experts of canslim I have a similar but a genral question on selling. I mentioned a few weeks ago that I picked up my first canslim stock, EME (EMCOR Group) when it broke at 28, and I bought it at that price. Can people give me general CANSLIM ideas on what to look for as a selling sign. The M is making me very nervous. It would be nice if everyone who has ideas on canslim rules on selling respond so that the novices like me learn this important aspect. Regards to everyone. Maninder - - ------------------------------ End of canslim-digest V2 #1155 ****************************** To unsubscribe to canslim-digest, send an email to "majordomo@xmission.com" with "unsubscribe canslim-digest" in the body of the message. For information on digests or retrieving files and old messages send "help" to the same address. Do not use quotes in your message.