Why Not Sell When A Stock Falls Out of the Buy Zone?
The Brockmann Method states that you should buy the stocks in the Buy Zone (top 10 ranked stocks) and then sell only when the stock passes into the Avoid Zone (26+ ranked stocks). Between the Buy Zone and the Avoid Zone is the Don't Buy More Zone. This is a kind of buffer or damper on the natural volatility in the changes in Zones from one day to the next.
As shown in the image on the right, an activity caused the Index value to jump a lot in a single day. Almost $200k. What would cause that gap reduction?
