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Traders usually plot retracement from a significant high such as a 52-week high or 252-day high or 20-day high etc.
Stocks trading within a 10% or 20% range (retracement) from important highs are considered to be bullish. Same way, stocks trading within 10% – 20% of important lows are considered to be in bearish momentum.
This indicator provides facility to select the period and retracement percentage to plot the momentum band on the chart. The conditions available in the system builder of the indicator can help you design scanners based on this indicator. This indicator is also very useful to rank the stocks.
The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.
The indicator is applicable to all types of charting. Calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.
This indicator is also available in the System Builder of RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.