How do you get the Ctabs "sell" target price?
The scenarios for a Ctabs "sell" are not necessarily a reverse of the "buy" logic. One key aspect is the difference between opportunity loss (if you decide not to buy) versus profit loss or actual loss (if you decide not to sell).
For the Ctabs action commentary "Next trading day, sell if stock closes below $30 with a down candle.", you have to look for an opportunity to sell the stock at $30 but only if the stock closes below $30 with a down candle. Selling at a price higher than $30 is more profitable; selling at a price lower than $30 is less profitable.
A relatively safe and easy way is to wait towards the end of the trading day before committing a sell. Towards the end of the trading day, the day's high and low points are likely to be set without further change and a down candle formation should be apparent if indeed the stock is going to close with a down candle. However, the stock price may be far below $30 in which case the sell at the lower price is still valid to satisfy the "sell" action but at a less profitable price point. That is the trade off. Safer sell action at a less profitable price point. This is consistent with risk-reward in stock trading decisions. If the price point is too low for your risk-reward ratio, you may elect to pass up on the sell opportunity altogether. However, you are passing up on an opportunity to take profit. And you are passing up the opportunity to exit the long position. If that downtrend continues, you will bear a loss in the worst case. Between taking a lower profit (but profit nonetheless) now versus the risk of a loss later, the former may be more acceptable to you.
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