gapped down charts, page-9

madmacs chat Madmacs, i look for breakouts also, thats probably how we run into each other

had 4 good trades out of mgx since the break of 22c, got some more at 27 today on open, hope for a bounce.

i have a mathematical/statistical background, thats what brought me to TA. I wanted solid data about breaks of resistance, but couldnt find any. So about 2 months ago i backtested every stock over a 2 year period. yes it took a day.

I looked for a min 8% break at close of a min 6 month high. i added a volume filter of $100000 a day. the price had to hold the base of the break candle for three days. I theoretically purchased on the 4th day close.

I then 'sold' when the 7 day average crossed down thru the 14 day.

I looked at each chart and got rid of consolidations etc

Well there were about 450 'trades'. Approx equal number of bad and good trades. The average trade was +11%.