• Author / Uploaded
• Giang Hoang

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TD Propulsion - After a low, the market rallies, pulls back by at least 23.6% (bloomberg terminal use 25%) of that initial rally. Multiply the pullback low by 23.6% (25%) to identify the trigger point and the same low by 47.2% (50%) to identify an exhaustion point. The pullback low must not be lower than the low that started the rally. ie. Market low 9835, market high 11205 11205-9835=1370 1370 x 23.6%=323 We need a pullback low to be lower than 11205-323=10882 Say a pullback low is 10650 then the trigger point is 10650+323=10973 and exhaustion point is  10650+(2x323)=11296 The opposite for market falls. In reality, I found that using the low and the closing price of the high bar works better (or high and closing price of the low bar for drops) and sometimes the exhaustion point acts as a second trigger point to a higher exhaustion point. ie in the above example trigger2=11296 and exhaustion point is 11296+323=11619 I use a modified fib from the low to the high close bar (23.6, 38.2, 50) to identify the future pullback low and whichever the pullback low touches, use that to project the price. eg pullback low touches the 38.2, multiply by 38.2% I enter the data into a spreadsheet and manually draw the projection lines. If an indicator was developed, maybe it should have the option of using low to high or low to high close for uptrend or high to low or high to low close for downtrend etc Hope this helps.