These stocks, referred to as
“Watchlist Candidates,” may be in the earliest stages of a cup with handle base
even if they have not yet formed a handle, formed the handle at the appropriate
spot in the cup with handle pattern, or formed a cup with handle pattern that meets all
the desired characteristics simultaneously.
2. Watchlist Candidates are then tested to see if they meet
the desirable cup with handle characteristics in anticipation of a
breakout attempt on the next trading day. Those that meet all criteria are
placed on our watchlist entitled “CwH WatchSM.” Intraday breakout attempt
alerts are issued only on stocks contained in CwH Watch.
Watchlist Candidates that do not meet all the required
criteria are placed on our watchlist entitled “BaseWatch™.” [Available in a
future release.] You may wish to monitor stocks in BaseWatch in order to
get an early start on due diligence, but we do not issue intraday alerts for
stocks in BaseWatch. If on a later date they meet all the necessary
requirements, they will move to BreakoutWatch.
Watchlists are updated at the end of each trading day using closing prices and volumes. The watchlist date is as of the close on the date indicated. The watchlist is then used for trading on the following market day.