The Buy and Sell resistance settings in the PCA System will affect the amount of price change required to signal a trade in the holding. The default resistance settings are 10% for both the buy and sell. this seems to be a good general setting for most equities, though tweaking the resistances for the "personality" of an individual stock can yield superior results. the resistance settings can be altered at any time, and the system will use the new values in the subsequent management of the holding.

The Buy and Sell Resistances are one of the best way for the user to adjust the system to trade at levels that make sense at the time. If a stock is exceptionally strong and has a lot of momentum, the sell resistance can be raised to postpone and slow down the rate of selling. The higher the sell resistance, the more the stock will have to rise to signal a sell.

A good technique for capitalizing on a stock that does not fluctuate substantially enough to signal trades frequently is to se the Buy and Sell resistances to 0%. This will accelerate buying and selling so that only a minimal change in price is needed to signal a trade. This technique should be used only after close examination of the results since it can result in the draining of cash reserves rather quickly on price drops, and sell shares too rapidly on run-ups. The resistance settings are best used to regulate the system to signal trades at levels that the user is comfortable with. If you have a $20 stock in a good uptrend with lots of momentum, and a 10% sell resistance will have you selling at $25, raising the sell resistance to 20% may be a good way to hold off selling until the price reaches $30. Please beware that altering the resistance settings could cause you to miss an opportunity to trade if the stock does not reach the expanded price, and an opportunity can be missed. Please experiment with the resistance settings before changing them from the default of 10% so you know beforehand what the effect will be.