that is deep dude! But yes, current price move needs to be taken in context of the past. Gold stocks can easily move 5% in a day. if you are long ANG, and you have a 2% stop loss - you are going to get taken out with probably a 95% certainty. Your system is simply not taking in the 'noise' associated with market volatility. Another example of trade the price. AGL, by all rights, should be tanking. Dismal results, depressed market, CEO breaking up the company, yet it is rallying. No point trying to fight something when there is clearly news out there we don't know. Where technical analysis comes into play (and I am with Simon on the lack of value of indicators) is what happens now. Price action is telling us that AGL is reaching a point where buyers are drying out (doji candles, etc). This to me is a tempting time to get in for another short soon (some would look for confirmation - I don't trade like that personally).
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