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William O'Neill's CANSLIM Model - Strength of Cryptocurrency Exchange Platforms
Excerpt from “Trading — Your Path to Financial Freedom” by Fan K. Sap
CANSLIM is an acronym,
each letter represents a factor.
C stands for the most recent quarterly earnings per share,
up 70% compared to the same period last year;
A represents the annual earnings per share,
over the past 5 years, the annual earnings per share should have at least a 24% 5-year compound growth rate;
N stands for new things in the company,
it can be a new product,
service,
management change,
or industry change,
also indicates that the stock has reached a new high price;
S represents publicly issued and sold shares,
total share capital less than 25 million shares;
L stands for leadership,
using relative strength to rank stocks based on the price change over the past 12 months,
the top 75%-80% of stocks are worth considering,
or consider the recent 30-day price change volume ranking;
I represents institutional ownership;
M stands for overall market behavior,
more than 75% of stocks tend to fluctuate in line with the market’s average direction.
This model is entirely composed of certain factors,
except for N, which includes stocks reaching new highs,
your actual entry into the market is not very clear.
In addition,
you make no mention of protective stop-loss,
how to exit the market,
or the most critical system adjustments for positions.