O'Neil's Method
O'Neil's Method is a stock trading strategy developed by William J. O'Neil, founder of Investor's Business Daily. It focuses on identifying growth stocks with strong earnings and sales growth, using a systematic approach to select stocks based on specific criteria. The method emphasizes technical analysis, particularly chart patterns, to determine optimal entry and exit points.
Central to O'Neil's Method is the CAN SLIM acronym, which stands for key factors: Current earnings, Annual earnings growth, New products or services, Supply and demand, Leader or laggard, Institutional sponsorship, and Market direction. This framework helps investors make informed decisions and maximize their investment potential.