Ann: LIFX to Launch at Costco, Lowe's - Tripling US Retail Doors, page-156

• An X is created when the price moves higher by a set amount, called the box size. An O is created when the price drops the box size amount.
• I use 1 pip for the box size
• Xs and Os stack on top of each other, respectively, and will often form a series of Xs or Os.
• The box size is set based on the asset's price and the investor's preference.
• In order for the price to reverse, resulting in the formation of a new column of X's following Os or a new column of Os following Xs, the price must reverse by the reversal amount.
• I use 3 boxes for the reversal amount.

I look for support and resistance levels, overbought, or oversold situations.
Personally, I like oversold situations best, particularly on days when the market is going up and volume and buyers versus sellers ratios are favorable.

1. Is share oversold
2. Is the market going up
3. Is the buyer-seller ratio favorable
4. Read share forums like hotcopper but don't let this influence your trading decisions. The market as reflected in your chart is king.
5. Sell enough shares asap into any rebound or use a trailing stop to preserve capita

The above is often further supported by announcements made by Companies when they believe the share has dropped too far.

Hope this helps. It's stress-free investing. Have fun collecting free shares.