DEFINITION of '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.
INVESTOPEDIA EXPLAINS 'Fifty Percent Principle'
Also known as a "onehalf retracement," this correction is considered to be the normal course of uptrends as investors are initially weary and taking some profits.
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