JohnMuchow

50% Retracement - Support & Resistance

JohnMuchow 업데이트됨   
Retracement refers to price reversal after reaching a recent high or low, finding an area of support or resistance, and then continuing in the direction of the bigger picture trend. The concept of 50% retracement is based on the work of W.D. Gann.

Gann was born in 1878 in Texas. Over his trading career, it's been stated he was one of the most successful traders who ever lived. With that said, there is no irrefutable proof he made great fortunes in the market. However, it's a fact that his trading ideas and principles are still in use today, many years after his death in 1955.

Gann believed there was a natural order that exists for everything in the universe, including the stock market. He theorized that price movements occurred in a manner that can be pre-determined based on historical precedent and the influence of mathematical equations and relationships. The end result was predictable movement of prices between areas of support and resistance.

The idea of 50% retracement is best explained in this quote from Gann:

"After an initial, sustained price move, either up or down, prices retrace to 50% of their initial move."

What's important here is the idea that retracement applies in both directions. When price is heading up, it may be approaching an area of resistance. When price is declining, it may be heading towards an area of support.

Continuation of the Trend

The primary reason we are interested to gauge levels of retracement is that once a retracement is complete, there is often a continuation of the previous trend. For example, if moving from a recent low to a new high, if price retraces 50%, at that point we look for a bounce and a continuation of the upward trend.

Retracement to Area of Support

When moving a recent low to a recent high, one can anticipate a price to move down 50% of the original move up.

For example, if a stock climbed from $50 to $100, a 50% retracement of the move from low to high would result in a price of $75. We now look for this $75 price area to be an area of support.

Retracement to Area of Resistance

Retracement is also applicable in the other direction. If price moves from a recent high to a new low and starts moving back up, look for price to regain 50% of the original move down. This retracement is often an area of resistance.

For example, if the recent high was $100 and price bounced off a low of $50, look for resistance near $75.



Additional Retracements - 33% and 66%

Gann also focused on other incremental retracements that he calculated based on various geometric angles believed to balance price and time. What I've found most helpful is to keep things simple and focus on no more than three retracements, 33% 50% and 66%.


Direction of Retracement

When moving from a recent low to a new high, the retracement will be downward. If multiple retracement percentages are shown, they will be smallest to largest going from the top to bottom.

When moving from a recent high to a new low, the retracement will be upward. If multiple retracement percentages are shown, they will be smallest to largest going from the bottom to top.

Retracement Versus Reversal

As described above, retracement refers to retracing a move back down towards a recent low after hitting a new high, or moving back up from a recent low towards a previous high.

The difference between a retracement and reversal is that the latter breaks the uptrend as shown in the chart that follows:


■ With retracements, the upward trendline acted as support of the upward trend.
■ With a reversal, the upward trendline was broken and the price continued to move down.

Additional Retracement Examples


Features

■ Choose up to three retracement levels: 33%, 50% and 66%.
■ Configure price and line color at each retracement level.
■ Show/hide retracements on intraday, daily, weekly and monthly.
■ Set preferred lookback count for Marked Highs/Lows.
■ Show Marked Highs/Lows as price or symbols.
■ Show lines of support and/or resistance.
릴리즈 노트:
Release Notes: Version 2.0

■ Minor updates to Settings.

LevelUp ▪ Trend Follower Tools: LevelUpTools.net

$30 worth of TradingView Coins: www.tradingview.com/gopro/?share_your_love=johnmuchow

Paypal Donation: is.gd/PayPal_Donation (thank you!)
초대 전용 스크립트

이 스크립트에 대한 접근은 작성자가 승인한 사용자로 제한되며, 일반적으로 지불이 필요합니다. 즐겨찾기에 추가할 수 있지만 권한을 요청하고 작성자에게 권한을 받은 후에만 사용할 수 있습니다. 자세한 내용은 JohnMuchow에게 문의하거나 아래의 작성자의 지시사항을 따르십시오.

트레이딩뷰는 당신이 스크립트 작성자를 100% 신뢰하고 스크립트의 작동 방식을 이해할 때까지 스크립트 비용을 지불하고 사용할 것을 권장하지 않습니다. 대부분의 경우 트레이딩뷰의 커뮤니티 스크립트 에서 무료로 좋은 오픈 소스 대안을 찾을 수 있습니다.

면책사항

이 정보와 게시물은 TradingView에서 제공하거나 보증하는 금융, 투자, 거래 또는 기타 유형의 조언이나 권고 사항을 의미하거나 구성하지 않습니다. 자세한 내용은 이용 약관을 참고하세요.

작성자 지시 사항

Purchase the 50% Retracement indicator as part of the Power Trend Pro Toolkit: PowerTrendPro.com

차트에 이 스크립트를 사용하시겠습니까?

경고: 액세스를 요청하기 전에 읽으십시오 .