Question 62—A Stop That Is “Tighter by a Day”
Find the correct statement about a stop that is “tighter by a day” (“Nic’s Stop”):
1. Examine the bars that bracket a recent low and place your stop a little below the lower of those two bars.
2. Using a tight stop is not suitable for short-term trading.
3. This method is especially useful for long-term position trades.
4. A tight stop like this one eliminates slippage.
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