In a medium saucepan, combine caramels and evaporated milk. Cook over medium heat until caramels are melted, stirring constantly. Spoon caramel mixture over pretzel rods, one at a time, leaving about one inch uncovered.
Lay pretzels on a wax paper-covered baking sheet, until slightly hardened. Melt chocolate in another saucepan over medium heat, stirring constantly. Carefully pick up caramel-coated pretzels one at a time and spoon melted chocolate over them, leaving a small amount of caramel uncoated. Return pretzels to wax paper-covered baking sheet; sprinkle with pecans, if desired.
Let cool completely. Store in an airtight container.