| Fifty Percent Principle |
 A principle that predicts that, before the observed trend continues forward, a price correction of approximately 1/2 to 2/3 of the change in price will occur.
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Also known as a "one-half retracement," this correction is considered to be the normal course of up-trends as investors are initially weary and taking some profits.
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Introduction to Technical Analysis - Here is an easy-to-understand tutorial on the various tools used in technical analysis, including moving averages, RSI, Bollinger bands, stock chart patterns, and much more. |
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Related Terms
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