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"You need a buy discipline and a sell discipline, no matter what your method. So far at the 8% rule is concerned, it only applies if you buy at a CANSLIM buy point. If, for example, there is a cup and handle and you get in at the pivot point, the theory is that the rally fails if it goes down 8% from the buy point. "
One of the canslimmers also had the notion of a "pocket pivot", where if a downtrend had broken, the "breakout" was the step above the trendline on heavier volume. He used that to carve out a few extra points before the traditional "breakout" point.

"Take a look at a list of stocks with allegedly good fundamentals. I say "allegedly" because it is very difficult to know such things."
Exactly, which is why technical helps. Those who have the weeks to ferret out the hidden information will move the price with their decisions. The point of technicals is to see the pattern of their choices and jump on board while there is still room in the run.

And if the fundamentals are good enough, they put a floor on the potential loss.

"Do you want to be in the market at all?"
Yes. And I will have a look at that 8,32 system. I think what you are saying is:
1: create a universe of stocks with good enough fundamentals
2: test a system where I buy and sell members of the universe on (8,32) ma crossovers.


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