When looking at entering on the pullback after the break, I typically
look for a retracement of .50 to .786 back from the last swing, and ideally
one of those retracements will overlap a 100 percent projection of a prior
swing. In this particular example, the pullback terminated right around
the coincidence of a .618 retracement back to the original high and a
.786 retracement of the prior minor swing that overlapped the 100 percent
projection of the move from point a to point b projected from point
c (see Figure 14-3). (With an entry closer to the 781.20–781.40 area, you
would be risking quite a bit less than if you entered with a stop at 780.30.)