The 56 Point TA; Charts With an Attitude Message Board

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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude

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To: d. alexander who wrote (9686)	12/28/1997 1:58:00 AM
From: Doug R	Read Replies (4) of 79292

DA, The best cup with handle example I've seen this year was WAXS. You'll need a 5 yr chart. Monthly closes will do. It will give you an idea of what the volume increase looks like too. How to Make Money in Stocks by W. J. O'Neill explains the concept rather well. The thing to remember is that the classic cases work best. A classic case involves a cup shape formed from alltime high to a significantly low bottom then back to the alltime high again. The classic cases usually take a year, or more often longer, to form. It seems that SESI formed what O'Neill described as a saucer (a shallower version of a cup) with no handle from 12/93 to 10/97 with a breakout on good volume taking the stock to a double from the breakout. Current activity is a burnoff of the frenzied buying during the run up. ASHW went from a high of 13 1/4 in early '94 to a low of 4 1/2 in 7/96 and is now nearly back to its alltime high while the handle may have started a bit early instead of up at the old high. The breakout will be obvious if it happens. Doug R

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