The Retracement Calculator computes the price retracement in percents in order to anticipate future trading opportunities.
To calculate Percent Retracement three points are selected on a chart: a significant high or low, the opposite to the first point high or low and an intermediate point between the first two for which the calculations will be performed. The price range between the first two points is considered to be 100%.
Performing Retracement Calculation
To perform Retracement Calculation:
- Select one of three ways to insert the Retracement Calculator:
- The cursor will change to the Retracement calculator .
- In the Chart Area click a significant high or low, which will be the Price 1.
- Click the opposite to the first point high or low, which will be the Price 2.
- Click the intermediate point for which the percent retracement should be calculated. This will be the Price 3.
- After clicking the third point the Retracement Calculator window will appear with the Retracement calculations.
- Click OK to close the window.