[isatrader]

I had similar question as hummigbird, I think what we are trying to say is that when the stock is on stage 2 advance, the line between SMA and the stock is large so it is hard to determine where to put the stop at. In addition to it, sometime there is just a small correction so hard to figure it out.

The answer varies based on whether you are using the trader method or the investor method. But I'll come back to you on this, as I need to go to sleep.