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Fifty Percent Principle

What Does It Mean?
What Does Fifty Percent Principle Mean?
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 Says
Investopedia explains Fifty Percent Principle
Also known as a "one-half 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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