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From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #2363 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, April 26 2002 Volume 02 : Number 2363 In this issue: [CANSLIM] Reversal Bars Re: [CANSLIM] How are you choosing your stocks? Re: [CANSLIM] FWIW [CANSLIM] TOM.....ERES Re: [CANSLIM] How are you choosing your stocks? Re: [CANSLIM] How are you choosing your stocks? Re: [CANSLIM] TOM.....ERES [CANSLIM] Japan? RE: [CANSLIM] Reversal Bars Re: [CANSLIM] Reversal Bars RE: [CANSLIM] Reversal Bars ---------------------------------------------------------------------- Date: Fri, 26 Apr 2002 00:29:01 EDT From: Mhboatman@aol.com Subject: [CANSLIM] Reversal Bars - --part1_171.cb47171.29fa318d_boundary Content-Type: text/plain; charset="US-ASCII" Content-Transfer-Encoding: 7bit Ernie, I am not familiar with the term "reversal bars" much less its pattern characteristics. Can you explain, direct me to a definition or display a typical chart? Thank you. Howard One of the things that I scan for is reversal bars. Typically on any given day there will normally be 30 to 50 stocks that trade at least 200,000 shares that have reversal bars. Today my screen returned 298 stocks with reversal bars. One more indicator that M could be ready to turn north. E - --part1_171.cb47171.29fa318d_boundary Content-Type: text/html; charset="US-ASCII" Content-Transfer-Encoding: 7bit <HTML> Ernie, I am not familiar with the term "reversal bars" much less its pattern characteristics. Can you explain, direct me to a definition or display a typical chart? Thank you. Howard One of the things that I scan for is reversal bars. Typically on any given day there will normally be 30 to 50 stocks that trade at least 200,000 shares that have reversal bars. Today my screen returned 298 stocks with reversal bars. One more indicator that M could be ready to turn north. E </HTML> - --part1_171.cb47171.29fa318d_boundary-- - - - -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, 25 Apr 2002 22:02:37 -0700 (PDT) From: Dimitri Katsaros <dcka@yahoo.com> Subject: Re: [CANSLIM] How are you choosing your stocks? Katherine, This seems quite contradictory... if one cannot sort according to the recommended minimums, then what is the point of stating them and... what is the value of the Daily Graphs Custom Screen Wizard? Just learning as I go Dimitri Katsaros - --- Katherine Malm <kmalm@earthlink.net> wrote: > Dimitri, > > Here is something I recently put together on my > interpretation of RS, group RS and EPS rankings. > > Interpretation of RS in CANSLIM > > > > CANSLIM focuses on strength, but it's *relative* > strength and in most cases *increasing* strength > that is most important. Also, technical strength > will outweigh historical fundamental rankings in > almost all cases, meaning that RS and A/D carry more > importance than EPS or SMR (that's my personal > assessment). With respect to industries, again, the > idea is subtle, but *rising* strength is key and in > my mind will outweigh the absolute group strength > ranking. > > > > On RS---from HTMMIS: > > p. 35-- "If the stock's relative price strength, on > a scale from 1 to 99, is below 70, it's lagging the > better performing stocks in the overall market." > > p. 175-- "You buy stocks that are performing > relatively stronger than the general market just as > they are beginning to emerge from a sound > base-building period." > > HTMMIS: confine most of your buying to RS>=80... > > IBD's 20 Rules to Investment Success: buy when > RS>=85 > > > > My interpretation: Stocks with RS>=70 are *not* > laggards. If RS is rising and >=70, then it is > increasing in strength and *beginning* to > outperform. Most of what you buy will likely have a > high RS when you buy it. But good stocks will often > break out when RS is a bit lower. The absolute > number is not as important as the *direction* of the > RS and the location of the RS *relative* to the > stock's RS earlier in its base. Also, if you > immediately filter out all stocks with RS<80 or 85, > you will not be watching them early enough to > perform due diligence and stalk the trade. My > approach focuses on stocks as they begin to > outperform so that you can catch them early enough > to perform due diligence and then wait for them to > set up technically. > > > > > > Overall conclusions: > > --Minimum acceptable RS if you are to consider a > stock as a potential buy candidate: >=60 and > *rising* > > --Minimum acceptable RS at the time of the buy >=70 > (otherwise it's considered a laggard and violates > the "L" in CANSLIM) > > --When looking at a stock's chart, look at the RS > while the base is forming. If the RS is not making > new highs relative to where it was earlier in the > chart, trouble is brewing because the stock is > beginning to lag the market, even though price is > rising. > > --A high RS ranking is sometimes misleading if > considered in isolation. A stock can have a high RS > if it is going down less than the overall market, > but the stock itself may be weak. A stock that has > already broken out and is making its ascent will > have a high RS. While that is a healthy sign, it is > not necessarily useful in finding new stocks that > are currently basing and therefore setting up to > break out. > > --All other things being equal, the stock with the > higher RS would be ranked higher if you were trying > to choose between 2 candidates. In other words, once > a minimum acceptable RS is met and the pattern of RS > is acceptable, the absolute value of the RS is more > useful as a *sorting* tool than a *filtering/mining* > tool. > > > > ======== > > > > I pulled some articles that help identify > "exceptions to absolute value of rankings" > > > > > > Investor's Corner Articles: > > ***11/14/01 "Not All Big Winners Hold Top > Ratings"--"[W]hat about stocks that break out and > have an EPS in the 70s? If everything else is in > place, don't dismiss them. If you don't you might > miss the next big stock winner." > > > > ***2/14/02 "Let Market Leaders Govern Your Buys"-- > "If the group is among the top 50 or is rising > quickly up the ranks, it will more likely become a > leader in a good market." (italics are mine) > > > > 2/19/02 "Great Stocks Aren't Always Flawless"--"How > many stocks run through that checklist flawlessly? > Not many. ... If the base is solid, it can still > become a winner." > > > > 3/11/02 "Stay on Top of Top Industries"-- " Watch > for groups making big moves up the charts." > > > > 1/15/02 "Not All Stocks First Hit All Time Highs" > --discusses turnaround stocks > > > > 8/31/01 "Market Washout Paves Way for New Bases"-- > resetting the base count after big corrections > > > > 7/3/00 "Investing Requires More Than Top > Ratings"--"Ratings don't tell you where a stock is > in its price cycle, let alone the market...Ignoring > charts could leave you buying a quality stock that's > ripe for a sell off." This is the very reason that I > don't mine for candidates with high EPS/RS rankings. > You are more likely to find those getting ready to > top, while ignoring those that are setting up and > building strength. > > > > 1/9/02 "Best Stocks Have High Price > Strength"--Discusses RS in general. Interestingly, > shows stocks at breakout where RS is high, but EPS > is low. More evidence that mining based on high EPS > to the exclusion of lower EPS's will often miss good > breakout candidates. > > > > 1/7/02 "How to Use Moving Averages Wisely"-- Good > discussion of the use of 50 and 200 day moving > averages. > > > > 2/4/02 "A New View of Truly Active > Stocks"--Discusses changes in the identification of > active stocks in the IBD. Interestingly, they > lowered both EPS and RS requirements for coverage > to.... EPS and RS >=70. This supports the HTMMIS > text from above. Also interesting, forward growth > estimates required for coverage? 15%. > > > > 3/28/02 "Web Site Teaches You the Ropes"--Nice chart > that identifies which concepts are covered in each > of the IBD Learning Center articles. > > > > Excerpted from the IBD Weblink (Italics are mine) > > ITT Educational Services, 4/17/02 > > Before Tuesday's big move, ITT's Relative Price > Strength Rating was a relatively tame 76. If you > only look at stocks with IBD ratings of 80 or > higher, then you're more likely to miss out on great > stocks that had formed long bases before leaping to > new highs. A 76 is perfectly acceptable if a stock's > other ratings glow. The provider of various computer > technology and other technical degree programs > boasts an A for Accumulation/Distribution Rating > (point 5), indicating mutual funds are snatching > shares. Although the Commercial Services-Schools > industry group currently holds a mediocre C ranking > (point 6) and a D for Group Technical Rating (point > 7), leading stocks such as Apollo Group, Bright > Horizons, Career Education and Corinthian Colleges > are tracing uptrends and are poised to make new > highs (point 8). Finally, consistent earnings and > sales growth over the past six years and outstanding > return on equity (44.9% in fiscal 2000, 47.2% in > 2001) award ITT an A+ Fundamental Rating (point 9). > > > > --Katherine > > ----- Original Message ----- > To: canslim@lists.xmission.com > Sent: Thursday, April 25, 2002 3:31 PM > Subject: [CANSLIM] How are you choosing your > stocks? > > > Hello all: > > I'm not sure how people are choosing stocks right > now... are some rules being dismissed? When I've > gone > looking, I come up with no candidates. Here is the > screen that I've built based on what I read in his > two > books and online: > > Screen Criteria Parameters > > Earnings Per Share (EPS) Rating From 85 to 99 > > Relative Price Strength (RS) Rating From 85 to 99 > > Industry Group Relative Strength (GRP RS) Rating > A, B > > Sales + Profit Margins + ROE (SMR) Rating A, B > > Accumulation/Distribution (Acc/Dis) Rating A, B > > % Change in Latest Quarter's EPS vs. Same Quarter > Prior Year Greater than or equal to: 25 > > % Increase in Current Annual EPS Estimate vs. Last > Reported Annual EPS (TCFYEC) Greater than or equal > to: > 30 > > EPS Have Been Accelerating Over the Latest 3 > Quarters > (%) True > > Annual % EPS Growth Rate of Last 3 Years Greater > than > or equal to: 30 > > % Change Latest Quarter's Sales vs. Same Quarter > Prior > Year Greater than or equal to: 25 > > Sales Have Been Accelerating Over the Latest 3 > Quarters (%) True > > Annual % Sales Growth Rate of Last 3 Years Greater > than or equal to: 20 > > Annual % Sales Growth Rate of Last 5 Years Greater > than or equal to: 20 > > Average Sales % Change for Last 3 Quarters Greater > than or equal to: 25 > > Company's Industry Group Rank From 1 to 40 > > Sponsorship Rating A, B > > % of Stock Owned by Mutual Funds Greater than or > equal > to: 1 > > % of the number of Mutual Funds Owning for Current > Quarter vs. Prior Quarter Greater than or equal > to: 1 > > Current Price Greater than or equal to: 20.000 > > Stocks trading at new 52-Week High AND Percentage > price is below 52-Week High From 0 to 10 > > Current 50-Day Average Volume(1000) Greater than > or > equal to: 200 > > % Increase in Volume (Current Day) vs. 50-Day > Average > Volume Greater than or equal to: 50 > > Average After Tax Profit Margin (Last 2 Quarters) > Greater than or equal to: 13 > > Companies With Accelerating After-Tax Profit > Margins > During Latest 3 Quarters (%) True > > Pre-tax Annual Margins (Latest Fiscal Year > Reported) > Greater than or equal to: 18 > > ROE (Latest Fiscal Year Reported) Greater than or > equal to: 17 > > Thank you > Dimitri Katsaros ===== Quiquid latine dictum sit altum viditur __________________________________________________ Do You Yahoo!? Yahoo! Games - play chess, backgammon, pool and more http://games.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: Fri, 26 Apr 2002 01:05:18 EDT From: AlpineTap34@aol.com Subject: Re: [CANSLIM] FWIW Anything at this point will probaby be nothing more than a bounce.....lots of difference between a bounce and a measurable consolidation pattern. Just my 2 cents. - - - -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: Fri, 26 Apr 2002 01:14:49 EDT From: AlpineTap34@aol.com Subject: [CANSLIM] TOM.....ERES Took a stab at this one today. At this point in my CANSLIM career, I admit I'm still relying more on the charts than the fundies. Hopefully, I'll be able to implement that better into my decision making in the near future. Anway, I was just curious if you followed this one.....or, had any thoughts. Trying to figure out if I've purchased a real dog. LOL. Thanks for the help. - - - -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: Fri, 26 Apr 2002 02:35:13 -0500 From: "Katherine Malm" <kmalm@earthlink.net> Subject: Re: [CANSLIM] How are you choosing your stocks? This is a multi-part message in MIME format. - ------=_NextPart_000_002A_01C1ECCA.FDE867A0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi Dimitri, The contradiction *is* the point. Think of it this way. Let's say that = you are a scout for a professional sports team and someone has given you = the following statistic: The average height of world class professional athletes is 5'7" Let's say that as a result of that statistic that you refuse to look at = any athlete who is less than 5'7." What does that mean? You have taken = an average and turned it into a minimum.=20 Here's another example. Let's say that somebody tells you that the = batting average of professional baseball players is 700 and that as a = result you refuse to look at any baseball player who has an average of = less than 700. You would say, of course that's silly, because if I'm = scouting for a team, I'm looking for an athlete who has a well rounded = set of skills and/or has a set of skills that adds value to the team as = a whole. You may, as a result of past studies determine that a baseball = player who has a batting average of less than 200 is unacceptable, but = you would not refuse to look at them if they had all the requisite = skills and a batting average of 650. The point is that you have to look at the preponderance of evidence for = the stock and not build your screens so tightly that you eliminate = excellent candidates just because they meet some arbitrary minimum cut = offs that are based on *averages* for past winning stocks. Katherine ----- Original Message -----=20 From: Dimitri Katsaros=20 To: canslim@lists.xmission.com=20 Sent: Friday, April 26, 2002 12:02 AM Subject: Re: [CANSLIM] How are you choosing your stocks? Katherine, This seems quite contradictory... if one cannot sort according to the recommended minimums, then what is the point of stating them and... what is the value of the Daily Graphs Custom Screen Wizard? Just learning as I go Dimitri Katsaros - ------=_NextPart_000_002A_01C1ECCA.FDE867A0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Diso-8859-1"> <META content=3D"MSHTML 6.00.2600.0" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV>Hi Dimitri,</DIV> <DIV> </DIV> <DIV>The contradiction *is* the point. Think of it this way. Let's say = that you=20 are a scout for a professional sports team and someone has given you the = following statistic:</DIV> <DIV> </DIV> <DIV>The average height of world class professional athletes is = 5'7"</DIV> <DIV> </DIV> <DIV>Let's say that as a result of that statistic that you refuse to = look at any=20 athlete who is less than 5'7." What does that mean? You have taken an = average=20 and turned it into a minimum. </DIV> <DIV> </DIV> <DIV>Here's another example. Let's say that somebody tells you that the = batting=20 average of professional baseball players is 700 and that as a result you = refuse=20 to look at any baseball player who has an average of less than 700. You = would=20 say, of course that's silly, because if I'm scouting for a team, I'm = looking for=20 an athlete who has a well rounded set of skills and/or has a set of = skills that=20 adds value to the team as a whole. You may, as a result of past studies=20 determine that a baseball player who has a batting average of less than = 200 is=20 unacceptable, but you would not refuse to look at them if they had all = the=20 requisite skills and a batting average of 650.</DIV> <DIV> </DIV> <DIV>The point is that you have to look at the preponderance of evidence = for the=20 stock and not build your screens so tightly that you eliminate excellent = candidates just because they meet some arbitrary minimum cut offs that = are based=20 on *averages* for past winning stocks.</DIV> <DIV> </DIV> <DIV>Katherine</DIV> <BLOCKQUOTE=20 style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; = BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px"> <DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV> <DIV=20 style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: = black">From:=20 <A title=3Ddcka@yahoo.com href=3D"mailto:dcka@yahoo.com">Dimitri = Katsaros</A>=20 </DIV> <DIV style=3D"FONT: 10pt arial">To: <A = title=3Dcanslim@lists.xmission.com=20 = href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>= </DIV> <DIV style=3D"FONT: 10pt arial">Sent: Friday, April 26, 2002 = 12:02=20 AM</DIV> <DIV style=3D"FONT: 10pt arial">Subject: Re: [CANSLIM] How are = you=20 choosing your stocks?</DIV> <DIV> </DIV>Katherine, This seems quite contradictory... if = one=20 cannot sort according to the recommended minimums, then what = is the=20 point of stating them and... what is the value of the Daily Graphs = Custom=20 Screen Wizard? Just learning as I go Dimitri=20 Katsaros</BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_002A_01C1ECCA.FDE867A0-- - - - -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: Fri, 26 Apr 2002 02:35:56 -0700 (PDT) From: Dimitri Katsaros <dcka@yahoo.com> Subject: Re: [CANSLIM] How are you choosing your stocks? Hey Katherine, You state many good points. So then, as a "scout" for potential stocks, one must still have minimums (which is what I thought WON was stating, my mistake). How then does one develop minimums so that a meaningful screen can be created (or can one?) Thank you Dimitri - --- Katherine Malm <kmalm@earthlink.net> wrote: > Hi Dimitri, > > The contradiction *is* the point. Think of it this > way. Let's say that you are a scout for a > professional sports team and someone has given you > the following statistic: > > The average height of world class professional > athletes is 5'7" > > Let's say that as a result of that statistic that > you refuse to look at any athlete who is less than > 5'7." What does that mean? You have taken an average > and turned it into a minimum. > > Here's another example. Let's say that somebody > tells you that the batting average of professional > baseball players is 700 and that as a result you > refuse to look at any baseball player who has an > average of less than 700. You would say, of course > that's silly, because if I'm scouting for a team, > I'm looking for an athlete who has a well rounded > set of skills and/or has a set of skills that adds > value to the team as a whole. You may, as a result > of past studies determine that a baseball player who > has a batting average of less than 200 is > unacceptable, but you would not refuse to look at > them if they had all the requisite skills and a > batting average of 650. > > The point is that you have to look at the > preponderance of evidence for the stock and not > build your screens so tightly that you eliminate > excellent candidates just because they meet some > arbitrary minimum cut offs that are based on > *averages* for past winning stocks. > > Katherine > ----- Original Message ----- > From: Dimitri Katsaros > To: canslim@lists.xmission.com > Sent: Friday, April 26, 2002 12:02 AM > Subject: Re: [CANSLIM] How are you choosing your > stocks? > > > Katherine, > > This seems quite contradictory... if one cannot > sort > according to the recommended minimums, then what > is > the point of stating them and... what is the value > of > the Daily Graphs Custom Screen Wizard? > > Just learning as I go > Dimitri Katsaros > ===== Quiquid latine dictum sit altum viditur __________________________________________________ Do You Yahoo!? Yahoo! Games - play chess, backgammon, pool and more http://games.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: Fri, 26 Apr 2002 08:53:56 -0400 From: "Tom Worley" <stkguru@bellsouth.net> Subject: Re: [CANSLIM] TOM.....ERES doesn't look like a dog to me, nice flat line base on the chart. earnings seem inconsistent in terms of profit margins. now extended 10%, so past a buy point, but if you are in, looks like it could make you some money. Tom Worley stkguru@bellsouth.net AIM: TexWorley - ----- Original Message ----- From: <AlpineTap34@aol.com> To: <canslim@lists.xmission.com> Sent: Friday, April 26, 2002 1:14 AM Subject: [CANSLIM] TOM.....ERES Took a stab at this one today. At this point in my CANSLIM career, I admit I'm still relying more on the charts than the fundies. Hopefully, I'll be able to implement that better into my decision making in the near future. Anway, I was just curious if you followed this one.....or, had any thoughts. Trying to figure out if I've purchased a real dog. LOL. Thanks for the help. - - - -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: Fri, 26 Apr 2002 09:27:39 -0400 From: "J. Lobatto" <jlobatto@nyc.rr.com> Subject: [CANSLIM] Japan? This is a multi-part message in MIME format. - ------=_NextPart_000_002F_01C1ED04.9BA7C4C0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable This may be a bit off topic (my apologies), but does anyone know a free = source of charts on individual Japanese stocks (not just indexes). = Thanks in advance. Jon - ------=_NextPart_000_002F_01C1ED04.9BA7C4C0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Diso-8859-1"> <META content=3D"MSHTML 6.00.2600.0" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV>This may be a bit off topic (my = apologies), but=20 does anyone know a free source of charts on individual Japanese = stocks (not=20 just indexes). Thanks in advance.</DIV> <DIV> </DIV> <DIV>Jon</DIV></BODY></HTML> - ------=_NextPart_000_002F_01C1ED04.9BA7C4C0-- - - - -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: Fri, 26 Apr 2002 08:56:06 -0500 From: "Hill, Ernie" <Ernie.Hill@ElPaso.com> Subject: RE: [CANSLIM] Reversal Bars This message is in MIME format. Since your mail reader does not understand this format, some or all of this message may not be legible. - ------_=_NextPart_001_01C1ED2A.1CBAFB70 Content-Type: text/plain Good morning Howard, When viewing a bar chart, a reversal bar is one that has a lower low and a lower high than the previous day, and closes in the upper range of that bar. The price action in the S&P 500 yesterday was a reversal bar. Trend changes are often marked by reversal bars. E - -----Original Message----- From: Mhboatman@aol.com [mailto:Mhboatman@aol.com] Sent: Thursday, April 25, 2002 11:29 PM To: canslim@lists.xmission.com Subject: [CANSLIM] Reversal Bars Ernie, I am not familiar with the term "reversal bars" much less its pattern characteristics. Can you explain, direct me to a definition or display a typical chart? Thank you. Howard One of the things that I scan for is reversal bars. Typically on any given day there will normally be 30 to 50 stocks that trade at least 200,000 shares that have reversal bars. Today my screen returned 298 stocks with reversal bars. One more indicator that M could be ready to turn north. E ****************************************************************** This email and any files transmitted with it from the ElPaso Corporation are confidential and intended solely for the use of the individual or entity to whom they are addressed. If you have received this email in error please notify the sender. ****************************************************************** - ------_=_NextPart_001_01C1ED2A.1CBAFB70 Content-Type: text/html Content-Transfer-Encoding: quoted-printable <html xmlns:o=3D"urn:schemas-microsoft-com:office:office" xmlns:w=3D"urn:sc= hemas-microsoft-com:office:word" xmlns:st1=3D"urn:schemas-microsoft-com:off= ice:smarttags" xmlns=3D"http://www.w3.org/TR/REC-html40"> <head> <META HTTP-EQUIV=3D"Content-Type" CONTENT=3D"text/html; charset=3DUS-ASCII"> <meta name=3DProgId content=3DWord.Document> <meta name=3DGenerator content=3D"Microsoft Word 10"> <meta name=3DOriginator content=3D"Microsoft Word 10"> <link rel=3DFile-List href=3D"cid:filelist.xml@01C1ED00.29EDAE70"> <o:SmartTagType namespaceuri=3D"urn:schemas-microsoft-com:office:smarttags" name=3D"time"/> <o:SmartTagType namespaceuri=3D"urn:schemas-microsoft-com:office:smarttags" name=3D"date"/>  <style>  </style>  </head> <body lang=3DEN-US link=3Dblue vlink=3Dpurple style=3D'tab-interval:.5in'> <div class=3DSection1> Good morning Howard,<o:p></o:p>= <o:p> </o:p> When viewing a bar chart, a reversal b= ar is one that has a lower low and a lower high than the previous day, and clo= ses in the upper range of that bar. The price action in the S&P 500 yesterd= ay was a reversal bar.<o:p></o:p> <o:p> </o:p> Trend changes are often marked by reve= rsal bars.<o:p></o:p> <o:p> </o:p> E<o:p></o:p> -----Original Message----- From: Mhboatman@aol.com [mailto:Mhboatman@aol.com] Sent: <st1:date Month=3D"4" Day=3D"25" Year=3D"2002">Thursday, April 25, 2002</st1:dat= e>= <st1:time Hour=3D"23" Minute=3D"29">11:29 PM</st1:time> To: canslim@lists.xmission.c= om Subject: [CANSLIM] Reversal = Bars <o:p> </o:p> Ernie, I am not familiar with the term "reversal bars" much less its pat= tern characteristics. Can you explain, direct me to a definition or displa= y a typical chart? Thank you. Howard One of the things that I scan for is reversal bars. Typically on any given = day there will normally be 30 to 50 stocks that trade at least 200,000 shares t= hat have reversal bars. Today my screen returned 298 stocks with reversal bars.= One more indicator that M could be ready to turn north. = E<fo= nt color=3Dblack face=3DArial FAMILY=3DSANSSERIF> <o:p></o:p> </div> <CODE> ****************************************************************** This email and any files transmitted with it from the ElPaso Corporation are confidential and intended solely for the use of the individual or entity to whom they are addressed. If you have received this email in error please notify the sender. ****************************************************************** </CODE></body> </html> - ------_=_NextPart_001_01C1ED2A.1CBAFB70-- - - - -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: Fri, 26 Apr 2002 10:12:06 EDT From: Chazmoore@aol.com Subject: Re: [CANSLIM] Reversal Bars - --part1_143.d8b5f6f.29faba36_boundary Content-Type: text/plain; charset="US-ASCII" Content-Transfer-Encoding: 7bit Ernie: Would you mind expanding a bit on reversal bars? Intuitively, it would seem that an increase in reversal bars would indicate a further market decline. Charley - --part1_143.d8b5f6f.29faba36_boundary Content-Type: text/html; charset="US-ASCII" Content-Transfer-Encoding: 7bit <HTML>Ernie: Would you mind expanding a bit on reversal bars? Intuitively, it would seem that an increase in reversal bars would indicate a further market decline. Charley</HTML> - --part1_143.d8b5f6f.29faba36_boundary-- - - - -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: Fri, 26 Apr 2002 10:39:23 -0500 From: "Hill, Ernie" <Ernie.Hill@ElPaso.com> Subject: RE: [CANSLIM] Reversal Bars This message is in MIME format. Since your mail reader does not understand this format, some or all of this message may not be legible. - ------_=_NextPart_001_01C1ED38.8A183BC0 Content-Type: text/plain Charley, The idea behind the reversal bar is this. During the day sellers are winning the battle driving the price down thus lower highs and lower lows than the previous day. At some point the selling dries up and the buyers take control thus causing the price to go up. If the buying is strong enough for the price to close in the top half of the bar then it is considered a reversal bar. If a stock or index closes in the top third of the bar it is considered to be a much better indicator than if it only closes in the top half. If the open is in the top third of the bar that also makes for a better reversal bar, because it indicates that selling pressure was more likely to have been sustained as opposed to just a big gap down open. Another important factor in reading reversal bars is the volume. A significant increase in volume is an additional indicator that the selling may have been exhausted. My discussion above was specific to a long reversal bar, there also short reversal bars. A short reversal bar is exactly the same except it occurs at tops and has higher highs and higher lows and closes in the lower half of the bar. The long reversal bar obviously occurs at bottoms. Like every other technical indicator by itself reversal bars don't mean much, but if you are expecting a trend change because of other analysis then a reversal bar can be very useful. When an abnormally high number of individual stocks have a reversal bar in any one given day the technician should be alert for a possible change in trend. E - -----Original Message----- From: Chazmoore@aol.com [mailto:Chazmoore@aol.com] Sent: Friday, April 26, 2002 9:12 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] Reversal Bars Ernie: Would you mind expanding a bit on reversal bars? Intuitively, it would seem that an increase in reversal bars would indicate a further market decline. Charley ****************************************************************** This email and any files transmitted with it from the ElPaso Corporation are confidential and intended solely for the use of the individual or entity to whom they are addressed. If you have received this email in error please notify the sender. ****************************************************************** - ------_=_NextPart_001_01C1ED38.8A183BC0 Content-Type: text/html Content-Transfer-Encoding: quoted-printable <html xmlns:o=3D"urn:schemas-microsoft-com:office:office" xmlns:w=3D"urn:sc= hemas-microsoft-com:office:word" xmlns:st1=3D"urn:schemas-microsoft-com:off= ice:smarttags" xmlns=3D"http://www.w3.org/TR/REC-html40"> <head> <META HTTP-EQUIV=3D"Content-Type" CONTENT=3D"text/html; charset=3DUS-ASCII"> <meta name=3DProgId content=3DWord.Document> <meta name=3DGenerator content=3D"Microsoft Word 10"> <meta name=3DOriginator content=3D"Microsoft Word 10"> <link rel=3DFile-List href=3D"cid:filelist.xml@01C1ED0E.975E28A0"> <o:SmartTagType namespaceuri=3D"urn:schemas-microsoft-com:office:smarttags" name=3D"PersonName"/>  <style>  </style>  </head> <body lang=3DEN-US link=3Dblue vlink=3Dpurple style=3D'tab-interval:.5in'> <div class=3DSection1> Charley,<o:p></o:p> <o:p> </o:p> The idea behind the reversal bar is th= is. During the day sellers are winning the battle driving the price down thus l= ower highs and lower lows than the previous day. At some point the selling dries= up and the buyers take control thus causing the price to go up. If the buying = is strong enough for the price to close in the top half of the bar then it is considered a reversal bar.<o:p></o:p> <o:p> </o:p> If a stock or index closes in the top third of the bar it is considered to be a much better indicator than if it = only closes in the top half. If the open is in the top third of the bar that also makes for a better reversal bar, because it indicates that selling pressure= was more likely to have been sustained as opposed to just a big gap down open.<= o:p></o:p> <o:p> </o:p> Another important factor in reading reversal bars is the volume. A significant increase in volume is an additio= nal indicator that the selling may have been exhausted.<o:p></o:p></font= > <o:p> </o:p> My discussion above was specific to a = long reversal bar, there also short reversal bars. A short reversal bar is exact= ly the same except it occurs at tops and has higher highs and higher lows and closes in the lower half of the bar. The long reversal bar obviously occurs= at bottoms.<o:p></o:p> <o:p> </o:p> Like every other technical indicator by itself reversal bars don't mean much, but if you are expecting a trend change because of other analysis then a reversal bar can be very useful. Wh= en an abnormally high number of individual stocks have a reversal bar in any o= ne given day the technician should be alert for a possible change in trend.<o:= p></o:p> <o:p> </o:p> E<o:p></o:p> <o:p> </o:p> -----Original Message----- From: Chazmoore@aol.com [mailto:Chazmoore@aol.com] Sent: Friday, April 26, 2002= 9:12 AM To: <st1:Perso= nName>canslim@lists.xmission.com</st1:PersonName>= Subject: Re: [CANSLIM] Rever= sal Bars<o:p></o:p> <o:p> </o:p> Ernie: Would you mind expanding a bit on reversal bars? Intuitively, it would seem that an increase in reversal bars would indicate a further market decline. Charley<o:p></o:p> </div> <CODE> ****************************************************************** This email and any files transmitted with it from the ElPaso Corporation are confidential and intended solely for the use of the individual or entity to whom they are addressed. If you have received this email in error please notify the sender. ****************************************************************** </CODE></body> </html> - ------_=_NextPart_001_01C1ED38.8A183BC0-- - - - -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 #2363 ****************************** 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.