- Messages
- 549
- Likes
- 2
Given our present position within the economic cycle I recently pulled out William O'Neil's "How to Make Money in Stocks" from my bookshelf.
O'Neil (one of the Market Wizards) popularised the Cup and Handle chart pattern and also promoted a system known by the CANSLIM mnemonic.
There is a brief description of it in the TA from A-Z book available online at www.equis.com that describes the way it works much better than I can. However it essentially looks for good companies that are likely to perform well in the future based on improving EPS, no. of shares in circulation, new highs, market leadership, institutional sponsorship and market direction.
I've put together a Sharescope datamining filter based on:
current price (to eliminate penny stocks)
% fall from high
% change EPS from last year and
number of shares in circulation
With reasonable parameters (100m shares, <20% from high, >25% increase in EPS) around 100 stocks are selected. Not all of the stocks will be winners but it provides food for thought.
O'Neil (one of the Market Wizards) popularised the Cup and Handle chart pattern and also promoted a system known by the CANSLIM mnemonic.
There is a brief description of it in the TA from A-Z book available online at www.equis.com that describes the way it works much better than I can. However it essentially looks for good companies that are likely to perform well in the future based on improving EPS, no. of shares in circulation, new highs, market leadership, institutional sponsorship and market direction.
I've put together a Sharescope datamining filter based on:
current price (to eliminate penny stocks)
% fall from high
% change EPS from last year and
number of shares in circulation
With reasonable parameters (100m shares, <20% from high, >25% increase in EPS) around 100 stocks are selected. Not all of the stocks will be winners but it provides food for thought.
