The Story
The Story of the 50% Pullback/Retrace
- Is the current trend bullish or bearish?
2. Is the main trend bullish or bearish on selected timeframe?
3. Where is price now? where are the keylevels?
4. Are there any Price Action?
5. Are there any failed Price Action?
6. Is there evidence that the market is getting rid of buyers or sellers?
💰“The Power of Price Action”
Quotes:
“Let Price Tell the Story.”
“Price Never Lies – Everything Else Might.”
“Trade What You See, Not What You Think.”
“Candles Speak Louder Than Indicators.”
- “The Truth is in the Candles.”
The Half-Price Hero: The 50% Retracement
Ollie “The Oracle of Obvious” often compared the market to a department store. “When a big trend starts, Chip, that’s a new product launch. The Pullback is the clearance sale,” he’d explain. “And the best professional traders? They only show up for the 50% off deals.”
Today, the asset was HyperGrowth Tech (HGT), which had just rocketed from $40 to $80—a massive $40 surge. The move was undeniable. Now, HGT was beginning its much-anticipated retrace.
Chip, immediately applying his full suite of mystical tools, declared, “Ollie, I’m targeting the 78.6% Fibonacci Retracement at $48. That’s the deepest, most conservative entry. That’s where the true value is.” He was waiting for HGT to give back nearly $32 of the gain.
Ollie sighed, professionally amused. “Chip, that’s not value; that’s wishful thinking. The market is not that generous. If the move was that strong, the buyers who drove it up won’t allow it to fall into the deep-discount bin. We’re targeting the $60 mark—the 50% retracement.”
Ollie placed his buy order precisely at $60. His logic was based on simplicity: the 50% line is where the initial strong buyers feel they’ve taken enough profit and the new, confident buyers see a fair compromise. It’s the symmetrical sweet spot where momentum is most likely to resume.
As HGT dropped, it hit $65, then $62, and finally touched the magical $60 line. It paused for the space of a deep breath—Ollie’s trade was executed perfectly—and then, with a terrifying velocity, the trend buyers returned. The price turned on a dime and began rocketing back toward its highs.
Chip watched in horror as the price shot past $65, leaving his $48 order hanging in the electronic void. “It never even came close! My deep discount strategy failed!” he wailed.
Ollie tapped the chart, closing his trade for a significant gain. “The 50% retracement, Chip, is the point of perfect symmetry. It tells you the sellers have only managed to push back half the initial strength. When a trend is powerful, it provides a generous, but not exhaustive, chance to join. The 50% is the professional’s entry because it gives you the best Risk/Reward without requiring the market to surrender its winning hand.”
The Story of the 50% Pullback/Retrace
The Story of the 50% Pullback/Retrace
The Story of the 50% Pullback/Retrace
- Is the current trend bullish or bearish?
2. Is the main trend bullish or bearish on selected timeframe?
3. Where is price now? where are the keylevels?
4. Are there any Price Action?
5. Are there any failed Price Action?
6. Is there evidence that the market is getting rid of buyers or sellers?
💰“The Power of Price Action”
Quotes:
“Let Price Tell the Story.”
“Price Never Lies – Everything Else Might.”
“Trade What You See, Not What You Think.”
“Candles Speak Louder Than Indicators.”
- “The Truth is in the Candles.”
The Story of the Chart
The Story of the Chart
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The Story of the Chart
The Story of the Chart
The Story of the Chart
The Story of the Chart
The Story of the Chart
The Story of the Chart
The Story of the 50% Pullback/Retrace
- Is the current trend bullish or bearish?
2. Is the main trend bullish or bearish on selected timeframe?
3. Where is price now? where are the keylevels?
4. Are there any Price Action?
5. Are there any failed Price Action?
6. Is there evidence that the market is getting rid of buyers or sellers?
💰“The Power of Price Action”
Quotes:
“Let Price Tell the Story.”
“Price Never Lies – Everything Else Might.”
“Trade What You See, Not What You Think.”
“Candles Speak Louder Than Indicators.”
- “The Truth is in the Candles.”
The Half-Price Hero: The 50% Retracement
Ollie “The Oracle of Obvious” often compared the market to a department store. “When a big trend starts, Chip, that’s a new product launch. The Pullback is the clearance sale,” he’d explain. “And the best professional traders? They only show up for the 50% off deals.”
Today, the asset was HyperGrowth Tech (HGT), which had just rocketed from $40 to $80—a massive $40 surge. The move was undeniable. Now, HGT was beginning its much-anticipated retrace.
Chip, immediately applying his full suite of mystical tools, declared, “Ollie, I’m targeting the 78.6% Fibonacci Retracement at $48. That’s the deepest, most conservative entry. That’s where the true value is.” He was waiting for HGT to give back nearly $32 of the gain.
Ollie sighed, professionally amused. “Chip, that’s not value; that’s wishful thinking. The market is not that generous. If the move was that strong, the buyers who drove it up won’t allow it to fall into the deep-discount bin. We’re targeting the $60 mark—the 50% retracement.”
Ollie placed his buy order precisely at $60. His logic was based on simplicity: the 50% line is where the initial strong buyers feel they’ve taken enough profit and the new, confident buyers see a fair compromise. It’s the symmetrical sweet spot where momentum is most likely to resume.
As HGT dropped, it hit $65, then $62, and finally touched the magical $60 line. It paused for the space of a deep breath—Ollie’s trade was executed perfectly—and then, with a terrifying velocity, the trend buyers returned. The price turned on a dime and began rocketing back toward its highs.
Chip watched in horror as the price shot past $65, leaving his $48 order hanging in the electronic void. “It never even came close! My deep discount strategy failed!” he wailed.
Ollie tapped the chart, closing his trade for a significant gain. “The 50% retracement, Chip, is the point of perfect symmetry. It tells you the sellers have only managed to push back half the initial strength. When a trend is powerful, it provides a generous, but not exhaustive, chance to join. The 50% is the professional’s entry because it gives you the best Risk/Reward without requiring the market to surrender its winning hand.”
The Story of the 50% Pullback/Retrace
The Half-Price Hero: The 50% Retracement
Ollie “The Oracle of Obvious” often compared the market to a department store. “When a big trend starts, Chip, that’s a new product launch. The Pullback is the clearance sale,” he’d explain. “And the best professional traders? They only show up for the 50% off deals.”
Today, the asset was HyperGrowth Tech (HGT), which had just rocketed from $40 to $80—a massive $40 surge. The move was undeniable. Now, HGT was beginning its much-anticipated retrace.
Chip, immediately applying his full suite of mystical tools, declared, “Ollie, I’m targeting the 78.6% Fibonacci Retracement at $48. That’s the deepest, most conservative entry. That’s where the true value is.” He was waiting for HGT to give back nearly $32 of the gain.
Ollie sighed, professionally amused. “Chip, that’s not value; that’s wishful thinking. The market is not that generous. If the move was that strong, the buyers who drove it up won’t allow it to fall into the deep-discount bin. We’re targeting the $60 mark—the 50% retracement.”
Ollie placed his buy order precisely at $60. His logic was based on simplicity: the 50% line is where the initial strong buyers feel they’ve taken enough profit and the new, confident buyers see a fair compromise. It’s the symmetrical sweet spot where momentum is most likely to resume.
As HGT dropped, it hit $65, then $62, and finally touched the magical $60 line. It paused for the space of a deep breath—Ollie’s trade was executed perfectly—and then, with a terrifying velocity, the trend buyers returned. The price turned on a dime and began rocketing back toward its highs.
Chip watched in horror as the price shot past $65, leaving his $48 order hanging in the electronic void. “It never even came close! My deep discount strategy failed!” he wailed.
Ollie tapped the chart, closing his trade for a significant gain. “The 50% retracement, Chip, is the point of perfect symmetry. It tells you the sellers have only managed to push back half the initial strength. When a trend is powerful, it provides a generous, but not exhaustive, chance to join. The 50% is the professional’s entry because it gives you the best Risk/Reward without requiring the market to surrender its winning hand.”
The Story
The Story of the 50% Pullback/Retrace
The Story of the 50% Pullback/Retrace
The Story
Add Your Heading Text Here
- Is the current trend bullish or bearish?
2. Is the main trend bullish or bearish on selected timeframe?
3. Where is price now? where are the keylevels?
4. Are there any Price Action?
5. Are there any failed Price Action?
6. Is there evidence that the market is getting rid of buyers or sellers?
💰“The Power of Price Action”
Quotes:
“Let Price Tell the Story.”
“Price Never Lies – Everything Else Might.”
“Trade What You See, Not What You Think.”
“Candles Speak Louder Than Indicators.”
- “The Truth is in the Candles.”
The Half-Price Hero: The 50% Retracement
Ollie “The Oracle of Obvious” often compared the market to a department store. “When a big trend starts, Chip, that’s a new product launch. The Pullback is the clearance sale,” he’d explain. “And the best professional traders? They only show up for the 50% off deals.”
Today, the asset was HyperGrowth Tech (HGT), which had just rocketed from $40 to $80—a massive $40 surge. The move was undeniable. Now, HGT was beginning its much-anticipated retrace.
Chip, immediately applying his full suite of mystical tools, declared, “Ollie, I’m targeting the 78.6% Fibonacci Retracement at $48. That’s the deepest, most conservative entry. That’s where the true value is.” He was waiting for HGT to give back nearly $32 of the gain.
Ollie sighed, professionally amused. “Chip, that’s not value; that’s wishful thinking. The market is not that generous. If the move was that strong, the buyers who drove it up won’t allow it to fall into the deep-discount bin. We’re targeting the $60 mark—the 50% retracement.”
Ollie placed his buy order precisely at $60. His logic was based on simplicity: the 50% line is where the initial strong buyers feel they’ve taken enough profit and the new, confident buyers see a fair compromise. It’s the symmetrical sweet spot where momentum is most likely to resume.
As HGT dropped, it hit $65, then $62, and finally touched the magical $60 line. It paused for the space of a deep breath—Ollie’s trade was executed perfectly—and then, with a terrifying velocity, the trend buyers returned. The price turned on a dime and began rocketing back toward its highs.
Chip watched in horror as the price shot past $65, leaving his $48 order hanging in the electronic void. “It never even came close! My deep discount strategy failed!” he wailed.
Ollie tapped the chart, closing his trade for a significant gain. “The 50% retracement, Chip, is the point of perfect symmetry. It tells you the sellers have only managed to push back half the initial strength. When a trend is powerful, it provides a generous, but not exhaustive, chance to join. The 50% is the professional’s entry because it gives you the best Risk/Reward without requiring the market to surrender its winning hand.”
The Story of the 50% Pullback/Retrace
- Is the current trend bullish or bearish?
2. Is the main trend bullish or bearish on selected timeframe?
3. Where is price now? where are the keylevels?
4. Are there any Price Action?
5. Are there any failed Price Action?
6. Is there evidence that the market is getting rid of buyers or sellers?
💰“The Power of Price Action”
Quotes:
“Let Price Tell the Story.”
“Price Never Lies – Everything Else Might.”
“Trade What You See, Not What You Think.”
“Candles Speak Louder Than Indicators.”
- “The Truth is in the Candles.”
The Half-Price Hero: The 50% Retracement
Ollie “The Oracle of Obvious” often compared the market to a department store. “When a big trend starts, Chip, that’s a new product launch. The Pullback is the clearance sale,” he’d explain. “And the best professional traders? They only show up for the 50% off deals.”
Today, the asset was HyperGrowth Tech (HGT), which had just rocketed from $40 to $80—a massive $40 surge. The move was undeniable. Now, HGT was beginning its much-anticipated retrace.
Chip, immediately applying his full suite of mystical tools, declared, “Ollie, I’m targeting the 78.6% Fibonacci Retracement at $48. That’s the deepest, most conservative entry. That’s where the true value is.” He was waiting for HGT to give back nearly $32 of the gain.
Ollie sighed, professionally amused. “Chip, that’s not value; that’s wishful thinking. The market is not that generous. If the move was that strong, the buyers who drove it up won’t allow it to fall into the deep-discount bin. We’re targeting the $60 mark—the 50% retracement.”
Ollie placed his buy order precisely at $60. His logic was based on simplicity: the 50% line is where the initial strong buyers feel they’ve taken enough profit and the new, confident buyers see a fair compromise. It’s the symmetrical sweet spot where momentum is most likely to resume.
As HGT dropped, it hit $65, then $62, and finally touched the magical $60 line. It paused for the space of a deep breath—Ollie’s trade was executed perfectly—and then, with a terrifying velocity, the trend buyers returned. The price turned on a dime and began rocketing back toward its highs.
Chip watched in horror as the price shot past $65, leaving his $48 order hanging in the electronic void. “It never even came close! My deep discount strategy failed!” he wailed.
Ollie tapped the chart, closing his trade for a significant gain. “The 50% retracement, Chip, is the point of perfect symmetry. It tells you the sellers have only managed to push back half the initial strength. When a trend is powerful, it provides a generous, but not exhaustive, chance to join. The 50% is the professional’s entry because it gives you the best Risk/Reward without requiring the market to surrender its winning hand.”
The Story of the 50% Pullback/Retrace
- Is the current trend bullish or bearish?
2. Is the main trend bullish or bearish on selected timeframe?
3. Where is price now? where are the keylevels?
4. Are there any Price Action?
5. Are there any failed Price Action?
6. Is there evidence that the market is getting rid of buyers or sellers?
💰“The Power of Price Action”
Quotes:
“Let Price Tell the Story.”
“Price Never Lies – Everything Else Might.”
“Trade What You See, Not What You Think.”
“Candles Speak Louder Than Indicators.”
- “The Truth is in the Candles.”
The Half-Price Hero: The 50% Retracement
Ollie “The Oracle of Obvious” often compared the market to a department store. “When a big trend starts, Chip, that’s a new product launch. The Pullback is the clearance sale,” he’d explain. “And the best professional traders? They only show up for the 50% off deals.”
Today, the asset was HyperGrowth Tech (HGT), which had just rocketed from $40 to $80—a massive $40 surge. The move was undeniable. Now, HGT was beginning its much-anticipated retrace.
Chip, immediately applying his full suite of mystical tools, declared, “Ollie, I’m targeting the 78.6% Fibonacci Retracement at $48. That’s the deepest, most conservative entry. That’s where the true value is.” He was waiting for HGT to give back nearly $32 of the gain.
Ollie sighed, professionally amused. “Chip, that’s not value; that’s wishful thinking. The market is not that generous. If the move was that strong, the buyers who drove it up won’t allow it to fall into the deep-discount bin. We’re targeting the $60 mark—the 50% retracement.”
Ollie placed his buy order precisely at $60. His logic was based on simplicity: the 50% line is where the initial strong buyers feel they’ve taken enough profit and the new, confident buyers see a fair compromise. It’s the symmetrical sweet spot where momentum is most likely to resume.
As HGT dropped, it hit $65, then $62, and finally touched the magical $60 line. It paused for the space of a deep breath—Ollie’s trade was executed perfectly—and then, with a terrifying velocity, the trend buyers returned. The price turned on a dime and began rocketing back toward its highs.
Chip watched in horror as the price shot past $65, leaving his $48 order hanging in the electronic void. “It never even came close! My deep discount strategy failed!” he wailed.
Ollie tapped the chart, closing his trade for a significant gain. “The 50% retracement, Chip, is the point of perfect symmetry. It tells you the sellers have only managed to push back half the initial strength. When a trend is powerful, it provides a generous, but not exhaustive, chance to join. The 50% is the professional’s entry because it gives you the best Risk/Reward without requiring the market to surrender its winning hand.”
The Story of the 50% Pullback/Retrace
- Is the current trend bullish or bearish?
2. Is the main trend bullish or bearish on selected timeframe?
3. Where is price now? where are the keylevels?
4. Are there any Price Action?
5. Are there any failed Price Action?
6. Is there evidence that the market is getting rid of buyers or sellers?
💰“The Power of Price Action”
Quotes:
“Let Price Tell the Story.”
“Price Never Lies – Everything Else Might.”
“Trade What You See, Not What You Think.”
“Candles Speak Louder Than Indicators.”
- “The Truth is in the Candles.”
The Half-Price Hero: The 50% Retracement
Ollie “The Oracle of Obvious” often compared the market to a department store. “When a big trend starts, Chip, that’s a new product launch. The Pullback is the clearance sale,” he’d explain. “And the best professional traders? They only show up for the 50% off deals.”
Today, the asset was HyperGrowth Tech (HGT), which had just rocketed from $40 to $80—a massive $40 surge. The move was undeniable. Now, HGT was beginning its much-anticipated retrace.
Chip, immediately applying his full suite of mystical tools, declared, “Ollie, I’m targeting the 78.6% Fibonacci Retracement at $48. That’s the deepest, most conservative entry. That’s where the true value is.” He was waiting for HGT to give back nearly $32 of the gain.
Ollie sighed, professionally amused. “Chip, that’s not value; that’s wishful thinking. The market is not that generous. If the move was that strong, the buyers who drove it up won’t allow it to fall into the deep-discount bin. We’re targeting the $60 mark—the 50% retracement.”
Ollie placed his buy order precisely at $60. His logic was based on simplicity: the 50% line is where the initial strong buyers feel they’ve taken enough profit and the new, confident buyers see a fair compromise. It’s the symmetrical sweet spot where momentum is most likely to resume.
As HGT dropped, it hit $65, then $62, and finally touched the magical $60 line. It paused for the space of a deep breath—Ollie’s trade was executed perfectly—and then, with a terrifying velocity, the trend buyers returned. The price turned on a dime and began rocketing back toward its highs.
Chip watched in horror as the price shot past $65, leaving his $48 order hanging in the electronic void. “It never even came close! My deep discount strategy failed!” he wailed.
Ollie tapped the chart, closing his trade for a significant gain. “The 50% retracement, Chip, is the point of perfect symmetry. It tells you the sellers have only managed to push back half the initial strength. When a trend is powerful, it provides a generous, but not exhaustive, chance to join. The 50% is the professional’s entry because it gives you the best Risk/Reward without requiring the market to surrender its winning hand.”
The Story of the 50% Pullback/Retrace
- Is the current trend bullish or bearish?
2. Is the main trend bullish or bearish on selected timeframe?
3. Where is price now? where are the keylevels?
4. Are there any Price Action?
5. Are there any failed Price Action?
6. Is there evidence that the market is getting rid of buyers or sellers?
💰“The Power of Price Action”
Quotes:
“Let Price Tell the Story.”
“Price Never Lies – Everything Else Might.”
“Trade What You See, Not What You Think.”
“Candles Speak Louder Than Indicators.”
- “The Truth is in the Candles.”
The Half-Price Hero: The 50% Retracement
Ollie “The Oracle of Obvious” often compared the market to a department store. “When a big trend starts, Chip, that’s a new product launch. The Pullback is the clearance sale,” he’d explain. “And the best professional traders? They only show up for the 50% off deals.”
Today, the asset was HyperGrowth Tech (HGT), which had just rocketed from $40 to $80—a massive $40 surge. The move was undeniable. Now, HGT was beginning its much-anticipated retrace.
Chip, immediately applying his full suite of mystical tools, declared, “Ollie, I’m targeting the 78.6% Fibonacci Retracement at $48. That’s the deepest, most conservative entry. That’s where the true value is.” He was waiting for HGT to give back nearly $32 of the gain.
Ollie sighed, professionally amused. “Chip, that’s not value; that’s wishful thinking. The market is not that generous. If the move was that strong, the buyers who drove it up won’t allow it to fall into the deep-discount bin. We’re targeting the $60 mark—the 50% retracement.”
Ollie placed his buy order precisely at $60. His logic was based on simplicity: the 50% line is where the initial strong buyers feel they’ve taken enough profit and the new, confident buyers see a fair compromise. It’s the symmetrical sweet spot where momentum is most likely to resume.
As HGT dropped, it hit $65, then $62, and finally touched the magical $60 line. It paused for the space of a deep breath—Ollie’s trade was executed perfectly—and then, with a terrifying velocity, the trend buyers returned. The price turned on a dime and began rocketing back toward its highs.
Chip watched in horror as the price shot past $65, leaving his $48 order hanging in the electronic void. “It never even came close! My deep discount strategy failed!” he wailed.
Ollie tapped the chart, closing his trade for a significant gain. “The 50% retracement, Chip, is the point of perfect symmetry. It tells you the sellers have only managed to push back half the initial strength. When a trend is powerful, it provides a generous, but not exhaustive, chance to join. The 50% is the professional’s entry because it gives you the best Risk/Reward without requiring the market to surrender its winning hand.”
The Story of the Event-Areas!
- Is the current trend bullish or bearish?
2. Is the main trend bullish or bearish on selected timeframe?
3. Where is price now? where are the keylevels?
4. Are there any Price Action?
5. Are there any failed Price Action?
6. Is there evidence that the market is getting rid of buyers or sellers?
💰“The Power of Price Action”
Quotes:
“Let Price Tell the Story.”
“Price Never Lies – Everything Else Might.”
“Trade What You See, Not What You Think.”
“Candles Speak Louder Than Indicators.”
- “The Truth is in the Candles.”
The Market’s Black Hole: Event-Areas
Ollie “The Oracle of Obvious” always said that a Key Level was the market’s memory, but an Event-Area was the market’s trauma. These were the price zones where major news—a surprise earnings report, a regulatory ruling, a CEO scandal—had caused the price to either surge or collapse so fast that it left a massive, hollow void on the chart.
Today, Ollie and Chip were watching Quantum Quibble (QQB), which was slowly climbing back toward a massive gap down that had occurred four months earlier.
Chip, clinging to his usual tangle of indicators, declared, “The slow, steady climb suggests the trend is weakening. I’m expecting heavy resistance here at $90, where the 200-period SMA is currently flatlining.”
Ollie simply pointed at the chart. “Chip, four months ago, QQB dropped from $110 to $85 in a single afternoon. That zone between $90 and $110 is not resistance; it’s a vacuum. The price moved through it too quickly for proper orders to be placed. There’s no friction, no anchor. Once it hits this Event-Area, it won’t be resisted—it will be sucked through.” He affectionately called these zones his “Market Black Holes.”
Ollie, setting a very tight Stop Loss just below $90, placed his trade with a calculated excitement. His logic was based on history: the price had no reason to slow down where it had previously demonstrated extreme speed. His trade was banking on the efficiency of the market to “fill the void.”
Chip scoffed and decided to short the conventional $90 resistance.
QQB hit $90, momentarily pausing for half an hour. Chip started high-fiving himself, convinced his indicator-laden patience had paid off. Then, the price action demonstrated the terrifying power of an Event-Area. A wave of buying entered, and QQB didn’t just climb; it rocket-boosted, slicing through $95, then $100, in a dizzying vertical climb that lasted the rest of the day.
Chip was stopped out instantly, his short having been short-circuited by the momentum.
Ollie, closing his 5R trade near the top of the Event-Area, smiled. “The lesson, Chip, is that when the market shows you it can move fast through a specific area, you treat that area with respect. It’s a low-friction zone. Professionals don’t bet against an Event-Area; they stand aside and wait for the price to tell them which way the vacuum is pulling, then they ride the rush.”
The Story of the 50% Pullback/Retrace
- Is the current trend bullish or bearish?
2. Is the main trend bullish or bearish on selected timeframe?
3. Where is price now? where are the keylevels?
4. Are there any Price Action?
5. Are there any failed Price Action?
6. Is there evidence that the market is getting rid of buyers or sellers?
💰“The Power of Price Action”
Quotes:
“Let Price Tell the Story.”
“Price Never Lies – Everything Else Might.”
“Trade What You See, Not What You Think.”
“Candles Speak Louder Than Indicators.”
- “The Truth is in the Candles.”
The Half-Price Hero: The 50% Retracement
Ollie “The Oracle of Obvious” often compared the market to a department store. “When a big trend starts, Chip, that’s a new product launch. The Pullback is the clearance sale,” he’d explain. “And the best professional traders? They only show up for the 50% off deals.”
Today, the asset was HyperGrowth Tech (HGT), which had just rocketed from $40 to $80—a massive $40 surge. The move was undeniable. Now, HGT was beginning its much-anticipated retrace.
Chip, immediately applying his full suite of mystical tools, declared, “Ollie, I’m targeting the 78.6% Fibonacci Retracement at $48. That’s the deepest, most conservative entry. That’s where the true value is.” He was waiting for HGT to give back nearly $32 of the gain.
Ollie sighed, professionally amused. “Chip, that’s not value; that’s wishful thinking. The market is not that generous. If the move was that strong, the buyers who drove it up won’t allow it to fall into the deep-discount bin. We’re targeting the $60 mark—the 50% retracement.”
Ollie placed his buy order precisely at $60. His logic was based on simplicity: the 50% line is where the initial strong buyers feel they’ve taken enough profit and the new, confident buyers see a fair compromise. It’s the symmetrical sweet spot where momentum is most likely to resume.
As HGT dropped, it hit $65, then $62, and finally touched the magical $60 line. It paused for the space of a deep breath—Ollie’s trade was executed perfectly—and then, with a terrifying velocity, the trend buyers returned. The price turned on a dime and began rocketing back toward its highs.
Chip watched in horror as the price shot past $65, leaving his $48 order hanging in the electronic void. “It never even came close! My deep discount strategy failed!” he wailed.
Ollie tapped the chart, closing his trade for a significant gain. “The 50% retracement, Chip, is the point of perfect symmetry. It tells you the sellers have only managed to push back half the initial strength. When a trend is powerful, it provides a generous, but not exhaustive, chance to join. The 50% is the professional’s entry because it gives you the best Risk/Reward without requiring the market to surrender its winning hand.”