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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: microhoogle! who wrote (83125)4/16/2007 5:33:32 PM
From: RWS  Read Replies (1) of 206321
 
Here's something to add to your stops menu. In his book Van Tharp cites studies that show that a stock in an uptrend does not fluctuate over about 200% of its volatility as defined by the average true range. He suggests a stop at 250% of the ATR. That would be $0.90 on SLW.

Often volatility will decrease near a top which results in your stop getting tighter as price approaches the apex.

RWS
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