ARTICLE SYNOPSIS ...Trading Within The Cup by Rick Martinelli and Barry Hyman The classic approach to trading the cup-with-handle pattern is buying on a pullback during an uptrend before price breaks out. But what about traders who prefer to begin taking a position in a stock as it is setting up, rather than waiting for it to hit a new high? Trading within the cup-with-handle is another way to profit. In our October 1998 article, we described an automated approach to identify stocks that have set up the cup-with-handle structure with proper price and volume characteristics. The impetus for writing such an algor...
ARTICLE SYNOPSIS ...The cup-with-handle is a chart pattern that identifies stocks preparing for uptrends. Here are the steps to convert this pattern to a set of rules for screening your stock database to identify likely candidates. The CANSLIM approach to investing combines technical and fundamental analysis to identify some of the promising stocks in a cycle. According to the system, only those stocks meeting a set of quantifiable criteria are candidates for purchase. In addition, a stock must exhibit one of three or four different chart patterns that summarize less quantifiable aspects of the system. Manually...