Reading a blog post from Dr. Wish (posted 1/1/18) he stated “I don’t wait around holding declining stocks. Buy and hope is not my style. Once a stock closes 2 days below its red lines I like to exit. As the great William O’Neil has written, all stocks are bad, unless they are rising.”
I took a look at the chart of Microsoft as an example because I knew that it has some history of being range bound for a while and then trending recently. To me, it looks like this exit strategy would have resulted in many whipsaws where it would have taken me out of the stock only to see it rebound and continue trending up. In all fairness, I need to do a more detailed analysis using more stocks for examples and be more objective, but that will need to wait for another day.