In specific, I will set a certain price to a stock and I want to know how long takes until the historical prices reach this price. Thanks you.
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- $\begingroup$ Is quant.stackexchange.com/questions/24970/… helpful? $\endgroup$user59– user592016-08-06 23:36:53 +00:00Commented Aug 6, 2016 at 23:36
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Well, there's no simple answer, but with some assumptions on price generating process you can try to come up with some estimates. If you assume ABM, then your expected time until a price reaches a certain level is infinite [1]. But you can also derive probability density of how long you would have to wait [2].
Maybe some smarter forum member would add if there are similar formulas for GBM.
