[goodtyneguy]

There are a few different schools of thought out there when it comes to entry points. Morales & Kacher were very successful in using what they call a pocket pivot buy point which advocates getting in before the break out. As O'Neil's disciples they made a small adaptation to the CANSLIM model to take into account the difficult market they found themselves in between 2004 and 2006 if I recall correctly. At the time the S&P500 was stair stepping up but in a manner where most of the gains were being retraced after each advance.

http://www.virtueofselfishinvesting.com/...ket-Pivots

It's a very similar concept to Minervini's volatility contraction pattern which is detailed in his book Trade like a Stock Market Wizard. Isatrader posted up an example somewhere on the forum a few weeks ago, I think it was in the elite members area.