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Yes i think so too. And this low could be day 4 or 5 or 10 or whatever in
this example.
Why should day 20 be the lowest low in 20 days ?
Frans
At 12:12 PM 10/20/2001 -0400, you wrote:
>Shashi,
>
>Tell me if I am wrong but to me a 20 day low is the lowest price in the
>last 20 days.
>
>Holland
>
>Shashi Aggarwal wrote:
>>
>> Here is a little quiz. Its mainly for the benefit of less experienced
>> traders on this list. Since I devised this quiz myself, its not too
>> difficult ;-) By the way, this is how many people trade and make simple
>> mistakes.
>>
>> For purposes of this quiz, we will assume that the last bar (today)
>> displayed in a chart is bar 1, the one before that (yesterday's) is bar 2,
>> the one before that is bar 3, and so on.
>>
>> There are 3 traders - A, B and C. They all have day jobs and when they come
>> back home from work, they download the latest data and then look at the
>> daily charts of their stock holdings on their computers (in Metastock!)
>> Based on this, they then go to their brokers' websites and place
appropriate
>> orders. e.g. based on the chart, they update their sell-stop price daily.
>>
>> Lets say all 3 have a long position in a particular stock which has been
>> climbing steadily. They have only one sell condition - namely, sell when
the
>> stock makes a 20-day low. This is what they do:
>>
>> Trader A - he chooses the low price of bar 20 (latest bar is bar 1, one
>> before is bar 2...see above) and selects that as his sell-stop
>> Trader B - he chooses the low price of bar 19 for his sell-stop
>> Trader C - he chooses the low price of bar 18 for his sell-stop
>>
>> Which trader is right? Remember, the sell condition is "sell when the stock
>> makes a 20-day low". Answer tomorrow.
>>
>> Shashi
>
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