Traders' Roundtable

I came across an article that described a trend-following system with well-defined setup rules except for one: the stock should have at least 20% upside. This is the one rule that the author does not elaborate on.

I would like to ask that question to members of the forum. The best I can come up with is resistance by the major moving averages like 200MA and 50MA. Can you think of others?

Thank you!

This rule sounds very subjective - it could be almost anything, i.e. distance to nearest support/resistance defined by previous lows/highs; distance to a Fibonacci ratio retracement or extension; a point at which some fundamental valuation signals an over valued or "good" value price, etc. It's simply too hard to say without more information.