Breakout

Retracement is calculated based on the breakout period.
There are four types of breakout periods:

• 52-week high
• All-time high
• 52-week low
• All-time low

Among these, 52-week high and all-time high breakout periods are the most popular and effective indicators of bullish momentum. There must be strong reasons for a stock to mark such important highs.

Stocks within 20% or 50% retracement from these highs are considered strong bullish momentum stocks.

On the other hand, 52-week low or all-time low breakouts indicate bearish momentum. However, if a stock rises 100% or more from its 52-week low or all-time low, it can be classified as a strong bullish momentum stock.

A retracement between 20% and 50% from a 52-week high is a recommended condition for identifying bullish momentum stocks.