[isatrader]

For example, imagine a Stage 1 stock that has crossed above the 30 WMA and is about to breakout from its trading channel, however, there is a resistance line above the upper border of the channel. What constitutes overhead resistance as being too close to initiate a buy upon a breakout? If it is closer than 5%, 10%, 15% above the channel? Or should we use a dollar amount, such as $0.25, $0.50, $1, $2, etc.?

Personally, I find the weekly ichimoku cloud the best tool for this, as you can immediately see if a stock has overhead resistance to work through still. So I tend to never buy a stock that isn’t above its weekly cloud.