A little over a year ago I went to one of those free trading seminars provided by companies that want you to sign up for their coaching or training.
The concept they were teaching was day trading and so it did not interest me very much, but a couple things the speaker said were very interesting. The guy’s name was Tom Busby.
He said that once a stock breaks a hundred $ level for the first time it zooms up 10%. For example, once a stock breaks through $100 it is going to $110. When it breaks through $200 it is going to $220, etc.
I had heard this before somewhere so I started looking it up. It turns out that Jesse Livermore mentioned this in one of his books. Livermore was probably the best trader of all time.
So now with two reference points I decided this was something worthy of looking into. [...]