|
PureBytes Links
Trading Reference Links
|
I have been trading stocks & commodities successfully for 43 years and have
found the Cup & Handle pattern--when combined with EPS growth, advancing OBV,
strong sector leadership and an overall favorable bull market bias, to be one
of the most reliable and consistently profitable approaches to the market
that I have uncovered. (In my 43 years of studying the markets, I've read
over 137 books on the market and studied over 92 investment/trading
systems--applying knowledge [testing] learned from my MS in applied
mathematics and extensive computer programming knowledge). If there is an
easy means of filtering Cup & Handle patterns from the large number of stocks
traded, I have not found it. To shorten the analysis, I apply the other
requirements listed above first to get the stock list down to a manageable
level (and because some of the other trading techniques I use requires this
information also) and then look for the Cup & Handle pattern. When a number
of stocks show this pattern at the same time and the price breaks through the
upper level on good volume, there is a very high probability that you will
see a major move in the overall market. It takes patience to go through this
analysis and wait for these patterns to develop--but, my experience has been
that it is well worth it.
I'm writing this to assist those of you that may be looking for an improved
trading approach to take advantage of my experience and hopefully save you
some time in developing a trading system that you feel comfortable with and
that fits your own trading style. If you like it, it is recommended that you
test it extensively over past data both to gain confidence in the approach
and to get a good "feel" for the variations in the Cup & Handle pattern that
produce successful trades.
Good luck and good trading,
Joe Nemecek
|