$1.65 for breakout, page-5

So to answer your question, If it fell out of its ascending channel, I would put a sell order in one tick above where I bought (to cover brokerage) and would wait to see if it bounced back and retested the point at which it fell out of its channel. Failing that I use a 20% stop loss. Seems excessive, but it works for me. 95% percent of my stocks that have fallen out of their pattern have recovered within 6 weeks to allow me to get out even. Preservation of capital is of most importance. Of note, I would take a break out of an ascending pattern to the downside very seriously, and usually ignore any upside breakouts and these are usually false breakouts. All IMO.