Letters To S&C by Technical Analysis, Inc.
“NO NINES” RULE
I read Ken Calhoun’s article in the August 2017 issue, “Avoiding False Breakouts: No 9s” and thought I’d test the idea. The theory is to avoid trades with a nine to the left of the decimal and buy in later, at 50 cents above the next whole dollar. For example, if the buy signal happened at $29.00, you’d wait until price climbed to $30.50 before buying. Calhoun also specified in the article that trades should be in the $20 to $70 range and have a $2 stop ...