People of Wal-Mart: Still Spendin’
While the People of Wal-Mart website is always an entertaining bookmark, the stock itself is no joke. Sporting nearly a 20% return since its August low, this slow mover has outpaced the S&P’s return by about 2 1/2 times.
Checking out the recent price action, the stock is a bit range-bound, but a closer examination reveals an often misunderstood pattern: the cup & handle pattern. The look of the pattern is easily identifiable to even novice chart readers, but they usually fail to take it in context. Here, it’s right where it should be found – within an uptrend.
Here’s a closer look at the chart:
A confirmation of this pattern with an upside exit would put this one in the mid-60’s in short order, so it’s worth keeping on the radar even though it’s far from a momentum name. If anything, this is simply an example worth pointing out. The handle may need a bit more work and it needs to threaten the upper trend line to indicate a move is imminent, but it belongs on the radar no less.
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Jeff White
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bertc72 | Dec 16, 2011 | Reply
Jeff,
Is there any formula that can be used with TC2000 to catch the cup and handle pattern?
Thanks
Anonymous | Dec 16, 2011 | Reply
Hey Bert, TC2000 can find whatever you want it to find. The key is mathematically structuring what a cup & handle is. There is no canned ‘cup & handle’ scan, but you can create formulas to look for anything you want.
You’d have to decide things like: how deep is the pullback from the left side of the cup to the bottom, how long does it take, how big is the rally back, up how to define the range for the handle, etc. Worden trainers can help you structure formulas if you know what you want to find.
Personally, I just eyeball the patterns after doing it so many years. If a mathematical formula is only slightly off, it will ignore what might be an excellent pattern, so I prefer trusting my brain rather than complex formulas. Just a matter of preference.
Hope this helps!
Anonymous | Dec 16, 2011 | Reply
Hey Bert, TC2000 can find whatever you want it to find. The key is mathematically structuring what a cup & handle is. There is no canned ‘cup & handle’ scan, but you can create formulas to look for anything you want.
You’d have to decide things like: how deep is the pullback from the left side of the cup to the bottom, how long does it take, how big is the rally back, up how to define the range for the handle, etc. Worden trainers can help you structure formulas if you know what you want to find.
Personally, I just eyeball the patterns after doing it so many years. If a mathematical formula is only slightly off, it will ignore what might be an excellent pattern, so I prefer trusting my brain rather than complex formulas. Just a matter of preference.
Hope this helps!
Anonymous | Dec 16, 2011 | Reply
Hey Bert, TC2000 can find whatever you want it to find. The key is mathematically structuring what a cup & handle is. There is no canned ‘cup & handle’ scan, but you can create formulas to look for anything you want.
You’d have to decide things like: how deep is the pullback from the left side of the cup to the bottom, how long does it take, how big is the rally back, up how to define the range for the handle, etc. Worden trainers can help you structure formulas if you know what you want to find.
Personally, I just eyeball the patterns after doing it so many years. If a mathematical formula is only slightly off, it will ignore what might be an excellent pattern, so I prefer trusting my brain rather than complex formulas. Just a matter of preference.
Hope this helps!
bertc72 | Dec 18, 2011 | Reply
Thanks . . .