You can connect from three to nine switches in a cascaded stack configuration. The cascaded stack operates in half-duplex mode. Figure 2-7 shows the connections on some supporting switches.
http://www.cisco.com/en/US/products/hw/modules/ps872/products_module_installation_guide_chapter09186a008007d1f6.html#xtocid11
There may be performance issues that require to use less switches in a stack. Remember that the available bandwidth must be shared by all stations in the stack, more nodes > less bandwidth.
In practical designs I never use more than four/five switches in a stack.
Regards,
Leo