From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #3134 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 Thursday, January 16 2003 Volume 02 : Number 3134 In this issue: Re: [CANSLIM] In this trader's market RE: [CANSLIM] In this trader's market [CANSLIM] High vs, Low Handle? RE: [CANSLIM] In this trader's market [CANSLIM] High vs, Low Handle? Re: [CANSLIM] SYMC RE: [CANSLIM] SYMC Re: [CANSLIM] High vs, Low Handle? RE: [CANSLIM] High vs, Low Handle?+SYMC [CANSLIM] U/D algorithm RE: [CANSLIM] U/D algorithm RE: [CANSLIM] U/D algorithm ---------------------------------------------------------------------- Date: Wed, 15 Jan 2003 20:51:25 -0700 From: "Rolf Hertenstein" Subject: Re: [CANSLIM] In this trader's market Seems like it's a bit hard to ignore analysts if one downgrade from buy to hold causes an 18% drop in your stock (I don't own BLUD). Perhaps the market's stronger resistance to bad news in the fall of 2002 is beginning to erode. Maybe it's just jitters associated with today's distribution day. Rolf > Yes, It think its fairly common in these canslim-momentum type stocks for > there to be some rapid sell offs, even in a strong market. I would also say > that analysts upgrades and downgrades are best ignored. Some > conspiracy types even think upgrades and downgrades are issued for the > purpose of allowing clients to unload a stock (an upgrade) or buy a stock. > > On 15 Jan 2003 at 20:10, rchodes wrote: > > > Is this a common fate for CANSLIM stocks or a relatively new trend by analysts > > to show that they are not afraid to downgrade a stock to a HOLD or even a SELL. > > > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 15 Jan 2003 23:15:09 -0600 From: "Katherine Malm" Subject: RE: [CANSLIM] In this trader's market Hi all, I agree with Rolf and Patrick that CANSLIM stocks have a tendency to crash and burn when their run is over. BLUD had several red flags flying going into the breakout 1/14: (1) Decelerating earnings and sales growth with the most recent earnings growth less than CANSLIM standards: http://www.cwhcharts.com/katherine/BLUDGrowth0103.JPG (2) A late stage base: http://www.cwhcharts.com/katherine/BLUD011003wkly.JPG and (3) An iffy base with no shakeout before the breakout: http://www.cwhcharts.com/katherine/BLUD011503.JPG Katherine - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Rolf Hertenstein Sent: Wednesday, January 15, 2003 9:51 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] In this trader's market Seems like it's a bit hard to ignore analysts if one downgrade from buy to hold causes an 18% drop in your stock (I don't own BLUD). Perhaps the market's stronger resistance to bad news in the fall of 2002 is beginning to erode. Maybe it's just jitters associated with today's distribution day. Rolf > Yes, It think its fairly common in these canslim-momentum type stocks for > there to be some rapid sell offs, even in a strong market. I would also say > that analysts upgrades and downgrades are best ignored. Some > conspiracy types even think upgrades and downgrades are issued for the > purpose of allowing clients to unload a stock (an upgrade) or buy a stock. > > On 15 Jan 2003 at 20:10, rchodes wrote: > > > Is this a common fate for CANSLIM stocks or a relatively new trend by analysts > > to show that they are not afraid to downgrade a stock to a HOLD or even a SELL. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 16 Jan 2003 04:51:28 -0800 (PST) From: Jack Subject: [CANSLIM] High vs, Low Handle? Mike's question/comment includes the term "High Handle" which I'm not sure I understand relative to the WON CWH patterns. I assume we are talking about handle height relative to the left cup start of base? The WON pattern should have a handle starting at least 85% from the start of the left side of the cup. The High pattern should have a handle starting at least 78% from the start of the left side of the cup. If the handle starts 7% lower, why call it a high handle? Thanks for your comments. Jack - --- michael_niemotka@baxter.com wrote: > Does it look to anyone else that SYMC has formed and > broken out of a cwh > with a high handle? > > Thanks > > Mike Niemotka , PE > Sr. Principal Engineer > Baxter Healthcare Corporation > Route 120 & Wilson Road > Round Lake, IL 60073 > Tel (847) 270-4075 > Fax (847) 270-4525 > michael_niemotka@baxter.com > > > > - > -To subscribe/unsubscribe, email > "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. ===== Jack __________________________________________________ Do you Yahoo!? Yahoo! Mail Plus - Powerful. Affordable. Sign up now. http://mailplus.yahoo.com - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 16 Jan 2003 06:59:40 -0600 From: Chris Dempsey Subject: RE: [CANSLIM] In this trader's market This is a multi-part message in MIME format. - --Boundary_(ID_rNsLzSTUVtpyn6zNiG6rDA) Content-type: text/plain; charset=iso-8859-1 Content-transfer-encoding: 7BIT Add PIXR to the downgrade list yesterday. I believe that if you follow the market and CANSLIM long enough you will find that over 50% of your stock transactions with losses came from analysts down grades. The analysts are generally wrong but you must still follow the rules, causing you to get out at inopportune times. - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of rchodes Sent: Wednesday, January 15, 2003 10:11 PM To: Canslim Subject: [CANSLIM] In this trader's market I've only followed this thread for less than a year now so I don't have a good historical perspective on the fate of CANSLIM stocks in a "trading market" (if that is what we are in). A couple of stocks BLUD and SFNT got slammed by downgrades today on valuation. No bad news as far as I could tell or even a chart pattern that I'd call a climax run. Just some analyst who felt that the stock got ahead of itself. Is this a common fate for CANSLIM stocks or a relatively new trend by analysts to show that they are not afraid to downgrade a stock to a HOLD or even a SELL. SNFT looks like it found some buying support when it approached the former base but BLUD (LLUR) got killed. - --Boundary_(ID_rNsLzSTUVtpyn6zNiG6rDA) Content-type: text/html; charset=iso-8859-1 Content-transfer-encoding: 7BIT

Add PIXR to the downgrade list yesterday.

 

I believe that if you follow the market and CANSLIM long enough you will find that over 50% of your stock transactions with losses came from analysts down grades. The analysts are generally wrong but you must still follow the rules, causing you to get out at inopportune times.

 

 

-----Original Message-----
From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of rchodes
Sent: Wednesday, January 15, 2003 10:11 PM
To: Canslim
Subject: [CANSLIM] In this trader's market

 

I've only followed this thread for less than a year now so I don't have a good historical perspective on the fate of CANSLIM stocks in a "trading market" (if that is what we are in).  A couple of stocks BLUD and SFNT got slammed by downgrades today on valuation.  No bad news as far as I could tell or even a chart pattern that I'd call a climax run.  Just some analyst who felt that the stock got ahead of itself.

 

Is this a common fate for CANSLIM stocks or a relatively new trend by analysts to show that they are not afraid to downgrade a stock to a HOLD or even a SELL.

 

SNFT looks like it found some buying support when it approached the former base but BLUD (LLUR) got killed.

- --Boundary_(ID_rNsLzSTUVtpyn6zNiG6rDA)-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 16 Jan 2003 05:53:03 -0800 (PST) From: Jack Subject: [CANSLIM] High vs, Low Handle? Mike's question/comment includes the term "High Handle" which I'm not sure I understand relative to the WON CWH patterns. I assume we are talking about handle height relative to the left cup start of base? The WON pattern should have a handle starting at least 85% from the start of the left side of the cup. The High pattern should have a handle starting at least 78% from the start of the left side of the cup. If the handle starts 7% lower, why call it a high handle? Thanks for your comments. Jack - --- michael_niemotka@baxter.com wrote: > Does it look to anyone else that SYMC has formed and > broken out of a cwh > with a high handle? > > Thanks > > Mike Niemotka , PE > Sr. Principal Engineer > Baxter Healthcare Corporation > Route 120 & Wilson Road > Round Lake, IL 60073 > Tel (847) 270-4075 > Fax (847) 270-4525 > michael_niemotka@baxter.com > > > > - > -To subscribe/unsubscribe, email > "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. ===== Jack __________________________________________________ Do you Yahoo!? Yahoo! Mail Plus - Powerful. Affordable. Sign up now. http://mailplus.yahoo.com - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 16 Jan 2003 06:01:37 -0800 From: "John Calkins" Subject: Re: [CANSLIM] SYMC IBD calls this high handle a flat base ontop of a longer base. What does this mean? JC - ----- Original Message ----- From: "Edward W. Gjertsen II" To: Sent: Wednesday, January 15, 2003 3:18 PM Subject: RE: [CANSLIM] SYMC > We got in the stock in November around 40.3 off a cup with no handle and > have added every so slightly since. Looks like a high handle on the > weekly chart - we added some of the recent "w". > > Ed Gjertsen II > ed@macktracks.com > > -----Original Message----- > From: owner-canslim@lists.xmission.com > [mailto:owner-canslim@lists.xmission.com] On Behalf Of > michael_niemotka@baxter.com > Sent: Wednesday, January 15, 2003 4:36 PM > To: canslim@lists.xmission.com > Subject: [CANSLIM] SYMC > > Does it look to anyone else that SYMC has formed and broken out of a cwh > with a high handle? > > Thanks > > Mike Niemotka , PE > Sr. Principal Engineer > Baxter Healthcare Corporation > Route 120 & Wilson Road > Round Lake, IL 60073 > Tel (847) 270-4075 > Fax (847) 270-4525 > michael_niemotka@baxter.com > > > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. > > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. > - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 16 Jan 2003 08:18:26 -0600 From: michael_niemotka@baxter.com Subject: RE: [CANSLIM] SYMC Ed, How did you determine the buy point ? I see the cup, but what made you decide that it had no handle? Thanks, and good luck, I am thinking about opening a position soon. Mike Niemotka , PE Sr. Principal Engineer Baxter Healthcare Corporation Route 120 & Wilson Road Round Lake, IL 60073 Tel (847) 270-4075 Fax (847) 270-4525 michael_niemotka@baxter.com "Edward W. Gjertsen II" To: canslim@lists.xmission.com cc: Sent by: Subject: RE: [CANSLIM] SYMC owner-canslim@lists.xm ission.com 01/15/2003 05:18 PM Please respond to canslim We got in the stock in November around 40.3 off a cup with no handle and have added every so slightly since. Looks like a high handle on the weekly chart - we added some of the recent "w". Ed Gjertsen II ed@macktracks.com - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of michael_niemotka@baxter.com Sent: Wednesday, January 15, 2003 4:36 PM To: canslim@lists.xmission.com Subject: [CANSLIM] SYMC Does it look to anyone else that SYMC has formed and broken out of a cwh with a high handle? Thanks Mike Niemotka , PE Sr. Principal Engineer Baxter Healthcare Corporation Route 120 & Wilson Road Round Lake, IL 60073 Tel (847) 270-4075 Fax (847) 270-4525 michael_niemotka@baxter.com - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 16 Jan 2003 08:27:06 -0600 From: michael_niemotka@baxter.com Subject: Re: [CANSLIM] High vs, Low Handle? Jack, My understanding is that you can actually have a handle that forms at a point higher than the left hand of the base. If you look at Mike Gibbons site, cwhcharts.com you will notice that you could have them form above the left lip, with a default value of 5%. I am still learning too, so maybe one of the other gurus (Katherine, are you reading this?) will chime in too. Mike Mike Niemotka , PE Sr. Principal Engineer Baxter Healthcare Corporation Route 120 & Wilson Road Round Lake, IL 60073 Tel (847) 270-4075 Fax (847) 270-4525 michael_niemotka@baxter.com Jack Sent by: To: canslim@lists.xmission.com owner-canslim@lists.xm cc: ission.com Subject: [CANSLIM] High vs, Low Handle? 01/16/2003 06:51 AM Please respond to canslim Mike's question/comment includes the term "High Handle" which I'm not sure I understand relative to the WON CWH patterns. I assume we are talking about handle height relative to the left cup start of base? The WON pattern should have a handle starting at least 85% from the start of the left side of the cup. The High pattern should have a handle starting at least 78% from the start of the left side of the cup. If the handle starts 7% lower, why call it a high handle? Thanks for your comments. Jack - --- michael_niemotka@baxter.com wrote: > Does it look to anyone else that SYMC has formed and > broken out of a cwh > with a high handle? > > Thanks > > Mike Niemotka , PE > Sr. Principal Engineer > Baxter Healthcare Corporation > Route 120 & Wilson Road > Round Lake, IL 60073 > Tel (847) 270-4075 > Fax (847) 270-4525 > michael_niemotka@baxter.com > > > > - > -To subscribe/unsubscribe, email > "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. ===== Jack __________________________________________________ Do you Yahoo!? Yahoo! Mail Plus - Powerful. Affordable. Sign up now. http://mailplus.yahoo.com - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 16 Jan 2003 09:51:26 -0600 From: "Katherine Malm" Subject: RE: [CANSLIM] High vs, Low Handle?+SYMC HI Jack & Mike, A "standard" handle forms when the pause/pullback is at or above the midpoint of the base. Stocks will normally pause/move up all the way up the right side of the base, but once the midpoint is hit, there's less risk that the stock will roll over and continue its downtrend. A clean breakout above the beginning of the pause (pivot) once the midpoint is hit shows the stock has some power to continue on above the beginning of the consolidation at the left side of the cup. A high handle forms when the pullback that begins the handle doesn't start until after the stock has already moved up past the left side of the cup. This often happens when there's a big straight up move off the bottom of the cup before the stock pauses. Here's a few graphics that might clear things up: http://www.cwhcharts.com/katherine/High+StdHandleR1.JPG Here are some details on types of bases with some notes as to when cups with no handles and flat bases typically occur. You'll see why SYMC is a good example of typical action in a stock leading the charge in the current market. http://www.cwhcharts.com/katherine/MiscBasesCharacteristicsSm.JPG In the case of SYMC, the stock formed a base on base pattern, with the first base being a cup with no handle, the second being a flat base. That's a subtle distinction from the high handle situation, primarily because the "pause" is long enough to form a flat base >=4 wks. Either way, it's just a method of identifying entry points. http://www.cwhcharts.com/katherine/BaseOnBaseCup+Flat.JPG http://www.cwhcharts.com/katherine/SYMC011003wkly.JPG http://www.cwhcharts.com/katherine/SYMC011603.JPG Katherine - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of michael_niemotka@baxter.com Sent: Thursday, January 16, 2003 8:27 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] High vs, Low Handle? Jack, My understanding is that you can actually have a handle that forms at a point higher than the left hand of the base. If you look at Mike Gibbons site, cwhcharts.com you will notice that you could have them form above the left lip, with a default value of 5%. I am still learning too, so maybe one of the other gurus (Katherine, are you reading this?) will chime in too. Mike Mike Niemotka , PE Sr. Principal Engineer Baxter Healthcare Corporation Route 120 & Wilson Road Round Lake, IL 60073 Tel (847) 270-4075 Fax (847) 270-4525 michael_niemotka@baxter.com Jack Sent by: To: canslim@lists.xmission.com owner-canslim@lists.xm cc: ission.com Subject: [CANSLIM] High vs, Low Handle? 01/16/2003 06:51 AM Please respond to canslim Mike's question/comment includes the term "High Handle" which I'm not sure I understand relative to the WON CWH patterns. I assume we are talking about handle height relative to the left cup start of base? The WON pattern should have a handle starting at least 85% from the start of the left side of the cup. The High pattern should have a handle starting at least 78% from the start of the left side of the cup. If the handle starts 7% lower, why call it a high handle? Thanks for your comments. Jack - --- michael_niemotka@baxter.com wrote: > Does it look to anyone else that SYMC has formed and > broken out of a cwh > with a high handle? > > Thanks > > Mike Niemotka , PE > Sr. Principal Engineer > Baxter Healthcare Corporation > Route 120 & Wilson Road > Round Lake, IL 60073 > Tel (847) 270-4075 > Fax (847) 270-4525 > michael_niemotka@baxter.com > > > > - > -To subscribe/unsubscribe, email > "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. ===== Jack __________________________________________________ Do you Yahoo!? Yahoo! Mail Plus - Powerful. Affordable. Sign up now. http://mailplus.yahoo.com - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 16 Jan 2003 08:42:20 -0800 (PST) From: Eric Jaenike Subject: [CANSLIM] U/D algorithm - --0-520943854-1042735340=:54900 Content-Type: text/plain; charset=us-ascii I've been comparing the U/D ratio used by IBD to Chaikin Money Flow. Does anyone have any info on the algorithm for U/D, or whether its an open/closed indicator, etc? Thanks, Eric - --------------------------------- Do you Yahoo!? Yahoo! Mail Plus - Powerful. Affordable. Sign up now - --0-520943854-1042735340=:54900 Content-Type: text/html; charset=us-ascii

I've been comparing the U/D ratio used by IBD to Chaikin Money Flow. Does anyone have any info on the algorithm for U/D, or whether its an open/closed indicator, etc?

Thanks,

Eric


Do you Yahoo!?
Yahoo! Mail Plus - Powerful. Affordable. Sign up now - --0-520943854-1042735340=:54900-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 16 Jan 2003 11:08:14 -0600 From: "Katherine Malm" Subject: RE: [CANSLIM] U/D algorithm This is a multi-part message in MIME format. - ------=_NextPart_000_0000_01C2BD4F.90DB4370 Content-Type: text/plain; charset="us-ascii" Content-Transfer-Encoding: 7bit Hi Eric, The U/D ratio is very simple and so has it's peculiar drawbacks, among which single big up or down days can distort the measure fairly easily. Like most technical indicators, it's just a quick way of summarizing what you can see in the Price/Volume action itself: U/D Definition: A 50-day ratio that is derived by dividing total volume on up days by the total volume on down days. A ratio greater than 1.0 implies positive demand for a stock. My understanding of Chaikin Money Flow (and his associated Accum/Distribution metric) is that it is much closer to IBD's A/D reading, as it looks at the closes relative to the day's range to determine buying/selling pressure. Katherine -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Eric Jaenike Sent: Thursday, January 16, 2003 10:42 AM To: canslim group Subject: [CANSLIM] U/D algorithm I've been comparing the U/D ratio used by IBD to Chaikin Money Flow. Does anyone have any info on the algorithm for U/D, or whether its an open/closed indicator, etc? Thanks, Eric - ------------------------------------------------------------------------------ Do you Yahoo!? Yahoo! Mail Plus - Powerful. Affordable. Sign up now - ------=_NextPart_000_0000_01C2BD4F.90DB4370 Content-Type: text/html; charset="us-ascii" Content-Transfer-Encoding: quoted-printable
Hi Eric,
 
The U/D ratio is very simple and = so has it's=20 peculiar drawbacks, among which single big up or down days can distort = the=20 measure fairly easily. Like most technical indicators, it's just a quick = way of=20 summarizing what you can see in the Price/Volume action = itself:
 
 U/D=20 Definition: A 50-day ratio that is derived by dividing total volume on = up days=20 by the total volume on down days. A ratio greater than 1.0 implies = positive=20 demand for a stock.
 
My understanding of Chaikin Money = Flow (and=20 his associated Accum/Distribution metric) is that it is much closer to = IBD's A/D=20 reading, as it looks at the closes relative to the day's range to = determine=20 buying/selling pressure.
 
Katherine
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of Eric=20 Jaenike
Sent: Thursday, January 16, 2003 10:42 = AM
To:=20 canslim group
Subject: [CANSLIM] U/D = algorithm

I've been comparing the U/D ratio used by IBD to Chaikin Money = Flow. Does=20 anyone have any info on the algorithm for U/D, or whether its an = open/closed=20 indicator, etc?

Thanks,

Eric


Do you Yahoo!?
Yaho= o! Mail=20 Plus - Powerful. Affordable. Sign= up=20 now
- ------=_NextPart_000_0000_01C2BD4F.90DB4370-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 16 Jan 2003 09:15:27 -0800 (PST) From: Eric Jaenike Subject: RE: [CANSLIM] U/D algorithm - --0-50385122-1042737327=:41103 Content-Type: text/plain; charset=us-ascii Thanks. Chaikin MF also has issues (as do all indicators, which is why the derivation needs to be understood, and why there is no substitute for eyeballing a chart, IMO). One of Chaikin's big problems, of course, comes with gaps. Eric Katherine Malm wrote:Hi Eric, The U/D ratio is very simple and so has it's peculiar drawbacks, among which single big up or down days can distort the measure fairly easily. Like most technical indicators, it's just a quick way of summarizing what you can see in the Price/Volume action itself: U/D Definition: A 50-day ratio that is derived by dividing total volume on up days by the total volume on down days. A ratio greater than 1.0 implies positive demand for a stock. My understanding of Chaikin Money Flow (and his associated Accum/Distribution metric) is that it is much closer to IBD's A/D reading, as it looks at the closes relative to the day's range to determine buying/selling pressure. Katherine-----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Eric Jaenike Sent: Thursday, January 16, 2003 10:42 AM To: canslim group Subject: [CANSLIM] U/D algorithm I've been comparing the U/D ratio used by IBD to Chaikin Money Flow. Does anyone have any info on the algorithm for U/D, or whether its an open/closed indicator, etc? Thanks, Eric - --------------------------------- Do you Yahoo!? Yahoo! Mail Plus - Powerful. Affordable. Sign up now - --------------------------------- Do you Yahoo!? Yahoo! Mail Plus - Powerful. Affordable. Sign up now - --0-50385122-1042737327=:41103 Content-Type: text/html; charset=us-ascii

Thanks. Chaikin MF also has issues (as do all indicators, which is why the derivation needs to be understood, and why there is no substitute for eyeballing a chart, IMO). One of Chaikin's big problems, of course, comes with gaps.

Eric

 Katherine Malm <kmalm@earthlink.net> wrote:

Hi Eric,
 
The U/D ratio is very simple and so has it's peculiar drawbacks, among which single big up or down days can distort the measure fairly easily. Like most technical indicators, it's just a quick way of summarizing what you can see in the Price/Volume action itself:
 
 U/D Definition: A 50-day ratio that is derived by dividing total volume on up days by the total volume on down days. A ratio greater than 1.0 implies positive demand for a stock.
 
My understanding of Chaikin Money Flow (and his associated Accum/Distribution metric) is that it is much closer to IBD's A/D reading, as it looks at the closes relative to the day's range to determine buying/selling pressure.
 
Katherine
-----Original Message-----
From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Eric Jaenike
Sent: Thursday, January 16, 2003 10:42 AM
To: canslim group
Subject: [CANSLIM] U/D algorithm

I've been comparing the U/D ratio used by IBD to Chaikin Money Flow. Does anyone have any info on the algorithm for U/D, or whether its an open/closed indicator, etc?

Thanks,

Eric


Do you Yahoo!?
Yahoo! Mail Plus - Powerful. Affordable. Sign up now


Do you Yahoo!?
Yahoo! Mail Plus - Powerful. Affordable. Sign up now - --0-50385122-1042737327=:41103-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ End of canslim-digest V2 #3134 ****************************** 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.