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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: Galirayo who wrote (55037)	12/31/2005 11:11:04 AM
From: Patrick Slevin	Respond to of 57110

I'm trying to get my head wrapped around that because I wonder if the reason for the difference in box size isn't because of true dollar difference. That is to say, a thousand shares of each stock....moving 3 points on the 90 dollar stock and 1.5 points on the 5 dollar stock. Now instead of a % move we are looking at actual gain or loss. I have to think about the rationale for the use of boxes instead of %. Also, wouldn't you expect to get nuttier swings on a low priced issue with such a tight parameter? Finally, how do we come up with the "correct" % for any given price? Trial and error? I notice in his second link that his range is from 2% down below 1%. In your or PG's experience are there a lot of false signals with such a low percentage? Bear with me, I'm slow on this.