Example #4 - Aetna (AET)
Aetna (AET) was said to be a bullish stock with good support in the 45-45.50 zone, and it was recommended as a pullback buy towards that area. The Trader Stop Loss was given as 42.99 and the Investor Stop Loss was given as 40.49
Trader stop - on the daily chart the last pivot low was 43.28 and so the 42.99 suggested stop loss position was directly under the pivot low and also under the full point.
Investor stop - 40.49 was the recommended level, which was below the swing low of 41.05. The 30 week MA was at 40.94, so we can see that the stop was placed below both and the half point.
ATR distance to stops - For AET the ATR(200) was 1.06 at the time of the recommendation and so:
- 1.90% to 2.37% ATR - Trader stop range
- 4.25% to 4.73% ATR - Investor stop range
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.