RE: Example #1 - Abbott Laboratories (ABT)
(2020-06-21, 12:08 PM)leaf Wrote: Hi , isa , you did a Great work !
In Example #1 - Abbott Laboratories (ABT) , i understand investor's and trader's stop from your descrtion . but i am confused by Atr distance to stops .
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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
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how do you get
"1.87% to 3.10% ATR - Trader stop range
3.72% to 4.96% ATR - Investor stop range
could you give me more detailed information about this ?
I was trying to see the typical distances that Stan was using for his stop losses based on the Average True Range. So I used the 200 dya ATR to measure each stop loss he gave to get a rough idea.
So in the example above where it says 1.87% to 3.10% ATR - Trader stop range. That means that the stop loss range given was 1.87x to 3.10x the 200 day ATR value at the time. which was 0.809.
1.87 x 0.809 = 1.51283
3.10 x 0.809 = 2.5079
Therefore as he recommended a buy zone of 56-57 and a Trader Stop Loss of 54.49
56 - 1.51283 = 54.49 (so this was 1.87x the 200 day ATR from the lower end of the buy zone)
57 - 2.5079 = 54.49 (and this was 3.10x the 200 day ATR from the upper end of the buy zone)
I hope that helps
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.