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stevehchis
Posted : Thursday, October 23, 2014 8:42:53 PM
Registered User
Joined: 3/7/2010
Posts: 168

hi 

i was looking for between   55% - 65% retracmt. from 1 mth low  and the 1 mth range (21 trading days)

be less then 9.25 x current ATR ...thx

Bruce_L
Posted : Friday, October 24, 2014 9:32:52 AM


Worden Trainer

Joined: 10/7/2004
Posts: 65,138

Let's start with the 1 month range being less than 9.25 times the current 14-period ATR.

MAXH21 - MINL21 < 9.25 * ((AVGH14 - AVGL14) / 2 + (ABS(H - C1) + ABS(C1 - L) + ABS(H1 - C2) + ABS(C2 - L1) + ABS(H2 - C3) + ABS(C3 - L2) + ABS(H3 - C4) + ABS(C4 - L3) + ABS(H4 - C5) + ABS(C5 - L4) + ABS(H5 - C6) + ABS(C6 - L5) + ABS(H6 - C7) + ABS(C7 - L6) + ABS(H7 - C8) + ABS(C8 - L7) + ABS(H8 - C9) + ABS(C9 - L8) + ABS(H9 - C10) + ABS(C10 - L9) + ABS(H10 - C11) + ABS(C11 - L10) + ABS(H11 - C12) + ABS(C12 - L11) + ABS(H12 - C13) + ABS(C13 - L12) + ABS(H13 - C14) + ABS(C14 - L13)) / 28)

The retracement is a bit more complicated. We can check for price being 55% to 65% higher than the 1 month low as follows.

1.55 * MINL21 <= C AND C <= 1.65 * MINL21

But I'm guessing this isn't actually what you want.

A retracement is normally how much price has retreated in the opposite direction from the longer trend or leg of a longer trend. The percentage would usually be as a percentage of the trend on leg instead of being a percentage of the low or high at the start of the retracement.

So the question becomes how you want to calculate the range and direction of the primary trend or leg to use as the basis of the retracement percentage.



-Bruce
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