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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: TATRADER who wrote (11799)	2/3/1998 2:33:00 AM
From: Doug R	Respond to of 79284

Mark, I would characterize a cup with handle as: A stock at an alltime high, for any number of reasons begins a gradual, sustained downtrend reaching a low that may be significantly below the alltime high. As business prospects or other fundamental changes in the co. begin to improve, the stock returns to its previous alltime high. At that point, many holders of the stock feel now that the high has been reattained, it would be a prudent thing to sell. After all, at this point, the chart shows nothing more than a double top. As the stock drifts downward over time, accumulation begins by others who are more attuned to some business aspect that makes them feel the price is still cheap even near the alltime high. The accumulation brings the handle back toward the high and as the aspect causing accumulation comes to fruition and the stock breaks above the old high. That the handle drifts down some then returns to the high again, now it can even be considered a breakout of a triple top. Most handles also exhibit an inverted head and shoulders formation and the move from the low to the rim then the handle activity can also be viewed as a major ascending triangle. Well I geuss that's enough for now (before I give my whole seminar talk here. It works better with the text and charts and stuff anyway). Doug R