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Worden Discussion Forum
We can't use absolute Dollar differentials because we don't have the Price of the stock being examined. $1 is 20% of a $5 stock, but is only 1% of a $100 stock. Thus we have to work with percentages.
I would assume a minimum 10% above the upside penetration of the 50 day SMA to be considered a true breakout. The upside thrust could carry well beyond that level in the short term before retracing.
I would consider the retracement "near" to be within 2% of the 50 Day SMA line. Again, it must be "near" enough to be logically construed as a retest of the breakout above the 50 Day SMA.
Sorry that I didn't recognize the need for tighter definitions to my original question(s)!