What is the Ideal Stock Price?
Cfefinances
The Ideal Stock Price is an estimate of an attractive purchase price within a stock's buy range. Using Home Depot as an example, with a calculated buy range of $48.88 to $75.336: take the high price of $75.336 minus the low price of $48.88, which equals $26.456. Multiply by 0.25 to get $6.614, then add to the low price to arrive at an ideal price of roughly $55.49.
Think about a target buy price set toward the low end of a stock's buy range. The method takes a quarter of the range and adds it to the low price.