Realistic Spread Determination

Discussion in 'Technical Analysis' started by carltonp, Mar 23, 2011.

  1. Hello Traders,

    I know how you guys like to beat up newbies like myself, so I'll keep this brief.

    Can someone please tell me how does one determination the realistic spread that can be achieved for a stock?

    For example, depending on how my strategy pans out, I plan to purchase ESRX for $53.33. My target price is $55.76. Therefore, the spread is $2.43. I would like to reach that target by Friday.

    I would like to know how do I determine if that is a realistic objective?

    One school of thought is the ATR for the stock.

    Any suggestions will be greatly welcomed.