An investment diary for subscribers: Let’s fight back together this November (month 11) | Chesley Investment Advisory Executive Director Park Se-ik [Chesley Official Membership (Internship) / 26.11.07 Sat., early morning]
An independent exercise, not a statement by the video creator or verification of every claim in the video.
Calculate the bounce and the loss from separate baselines
Suppose a stock closed at 100 the previous day, reached an intraday low of 85, then closed at 95. It rebounded about 11.8% from the low but finished 5% below the previous close. Choose the baseline that fits the purchase time or comparison, then track whether the next session retests the prior close or the low.
Check for yourself
- Which prices distinguish a stock that bounced off its low from one that recovered its previous loss?
- If a move above a moving average is the signal, how would you account for the next executable price and trading costs?
Limits of application
The numbers are hypothetical. The calculation alone does not identify the cause of the rebound, fair value or the subsequent direction.
- What to look for
- Examine selloffs through credit risk, rates, earnings and price action.
- Why it matters
- Calculate returns from both the intraday low and the prior close, then distinguish the distance to a moving average from evidence of recovery.
Timeline
6 segmentsA Korean stock can recover much of its opening loss and still finish below the previous close. The presenter compares the KOSPI and KOSDAQ with long moving averages and expects a recovery. The distance to an average helps quantify the required gain, while the price gap alone gives no arrival date.