(1) Pullback: about half the time, a breakout from a proper base may pullback to its buy point or slightly below. Rarely will it ever pull down 8% below your exact buy point if properly executed.
(1) A significant contraction in volume associated with tightness in price signals supply has stopped coming to market and the line of least resistance has been established.
(4) It doesn’t really matter what you think about a stock. What matters is what big institutions think, because they are the ones that can move a stock’s price dramatically. Therefore, it’s your job to find the companies that institutions perceive as valuable.
(1) Many times before a fundamental problem is evident, there will be a hint in the form of a material change in price behavior. That change should always be respected even if you don’t see any reason for the sudden change in sentiment . Earnings may still look good.
(6) Let the strength of the market tell you where to put your money, not your personal opinion, which rarely is a good substitute for the wisdom of the market. Ultimately, opinions mean nothing compared with the verdict of the market.