[isatrader]

Woo Hoo! That was a stock I just put on the watchlist today to keep track of. I'm starting to figure this out! But I'm confused. My chart on ProRealTime is showing a price almost $3 higher than the 30 MA and a resistance from over a year ago at $10.20. It appears on mine to have already broken above the 30 MA. Is the breakout you are referring to the $10.20 mark that the chart is calling "horizontal minor resistance"?

You've just discovered the major issue with ProRealTime historical data as the data is not adjusted for splits and dividends like it is on stockcharts, and so you get different resistance levels. We asked Stan a few years ago about what data to use, and he said adjusted data, so hence why I prefer stockcharts personally and pay for it's data, but they do have free charts too. So I'd suggest using ProRealTime's scanner, but make sure you double check the charts elsewhere like with stockcharts to make sure the historical levels have been adjusted so that you aren't basing decisions on the wrong levels.

If so, my thought based on the investor method is placing a buy-stop-limit at $10.25 and $10.50 respectively. My sell stop would be all the way back at $7.75. Seems like a big drop but unless there is another pullback before breaking out of resistance, that's the last pullback to reference. Am I on the right track?

You need to assess the historical and recent volatility of a stock to determine it's normal range of movement when considering stop losses, as for example with a 200 day ATR of 0.525 this stock is the equivalent of a wild beast, as that's 5.5% a day movement on average over the last 200 days of trading. So position sizing methods are something you should research which are not in the book, as a 20% move for a sub $10 pharma stock is very different to a 20% move in a large cap like IBM. So take the time to learn properly before jumping into wild stocks, as risk management is critical to long term sucess.