RE: Example #1 - Abbott Laboratories (ABT)
How was 3.72%-4.96% calculated from 0.809 ATR ? 3.72-4.96% of what? And with that 3.72-4.96%, how do you then calculate the price of the stop? #confused
(2013-03-20, 11:15 PM) Wrote: Investor stop - 52.99 was the recommended level, which is below the 30 week MA and also just under a round number. On the daily chart it is just under the 200 day MA also, but again it is not clear if this has any relevance yet until I go through more examples.
ATR distance to stops - On each chart I'm looking at the ATR(200) percentage distance from the recommended entry points to see what the average is for trader and investor positions as this could further help when choosing potential stocks with the risk reward calculations. For ABT the ATR(200) was 0.809 at the time of the recommendation and so:
- 1.87% to 3.10% ATR - Trader stop range
- 3.72% to 4.96% ATR - Investor stop range
Other observations - Price dips below the 50 day MA on a number of occasions; volume only average; relative performance fairly flat; moving averages all rising.