The Handbook of Technical Analysis + Test Bank_ The Practitioner\'s Comprehensive Guide to Technical Analysis ( PDFDrive )

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The formula for calculating upside retracement levels within a given price range is:

Trough (Price Range Retracement Ratio)+ ⋅

In our example, the observed the price range AB is:

Price Range Peak Trough

A B

78 48

30

=−

=−

=−

=

$ $

$

Figure 10.19 Upside Retracement on the Daily EURUSD Chart.
Source: MetaTrader 4

Figure 10.20 Upside Retracement on the Daily USDCAD Chart.
Source: MetaTrader 4