Dear Veluri,
I am bit confused...sorry to trouble you...giving you an example..pl clarify....suppose XYZ stock buy triggered on 11/feb--open 97 high102 low96 close102--on 12/feb--open 102 high103 low98 close100....what should I do?should I buy on 12/feb..because it crossed high of 11/feb(i.e.102)..or wait for closing price to cross 102.Thanks.
Sanjay,
As per old AFL.
Suppose, a Buy signal is generated on 11 Feb. AFL also gives buy price ie High of Signal day.
Next day, we should buy this scrip when the price just crosses above this given buy price. We donot bother even if the price tumbles down and closes in negative.
We are in trade just because the price crossed above our Buy price.
In EOD data if the price closes below our buy price, donot worry. We have a cushion of reliable Stop Loss. We book losses only when the price crosses below Stop Loss.
Let us take your example of ABC share.
11/Feb buy is triggered with a buy price of 102.
On 12/Feb the price just touched 102 and reversed back.
Ideally the price should cross 102 and stop buy should trigger at 102.05 or 102.10 ie one or two ticks above 102. Not exactly at 102. When the price crosses above 102, then ONLY our parameters satisfy.
Hope this would help.