Bulkowski buys these on an intraday break above the previous closing high. I’m considering altering this rule to buy on the next open after the stock closes above the previous closing high. I do not have anything objective to back this up, yet, but as soon as I do, I’ll be writing about it.
It was my understanding you were to wait until these broke the 52 week high
Derrr, that is correct. The “previous closing high” would be the 52 week high.
Are you saying that Bulkowski is using an intra-day 52 week high? I thought he was using closing prices, but I could be wrong.
I believe he’s using intraday 52 week high based on the chart of the sample trades he lists, for example AMR.
http://thepatternsite.com/Blog-Aug08.html#P13
I think the reason is if you look at ATAI today… It’s very volitile, so a move like closing above 8.10 probably wouldn’t have been indicative of a breakout. But it past the 8.65 by a cent today. O’Neil uses 10 cents above the buypoint, but I think Bulkowski would say that 8.66 is a buy. Ironically enough it just touched those levels and is rallying to retest into the close.