Hi Jan,
As you've noted on a number of posts, a great many stocks are extended. Accordingly, do you, or to your knowledge does Tom, have a general rule of thumb relative to the number of boxes you like to see an extended column pullback before taking a position? (If you have previously discussed this, sorry I missed it.)
Based on nothing more than reviewing Chartcraft Chart Books, I'm using a not cast in concrete system as follows:
Column of up to 15 boxes, standard pullback of 3
Column from 16 to 20 boxes, needs pullback of 4
Column from 21 to 25 boxes, needs pullback of 5
Column over 25 boxes, needs pullback of 6
Thanks for any comments.
Eric |
