Price Retrace
The Price Retrace rule calculates and monitors price retracement percentages within a specified price range. It measures how much the current price has pulled back from a previous move, which is invaluable for Fibonacci retracement strategies, pullback identification, and trend continuation analysis.
How It Works
The Price Retrace rule measures the percentage retracement of a current price relative to a defined price range. It uses three key price points—a start price, an end price, and a current price—and calculates the retracement using the following formula:
Retrace % = ((End Price - Current Price) / (End Price - Start Price)) × 100For example, if a price moves from 100 (start) to 120 (end) and then pulls back to 115 (current), the retracement is calculated as ((120 - 115) / (120 - 100)) × 100 = 25%. This means the price has retraced 25% of the original move.
You can specify a target retracement percentage and a comparison operator (greater than, less than, equal to, and so on) to control when the rule triggers. The rule executes only when the calculated retracement percentage satisfies the configured condition. This enables strategies to react when prices reach important retracement levels such as 38.2%, 50%, or 61.8%—the classic Fibonacci levels commonly used in technical analysis.
The rule operates continuously, recalculating the retracement percentage as new price data arrives, and only fires when the calculated percentage meets the specified condition. The Decimal Places parameter allows you to control the precision of the calculation to match your requirements.
Common use cases include Fibonacci retracement strategies that target specific percentage levels, identifying potential support or resistance at retracement levels, determining when pullbacks have become extended enough to signal a reversal, and timing entries based on typical retracement percentages.
Inputs
| Parameter | Description | Required | Default |
|---|---|---|---|
| Start Price | The starting price of the price range where retracement is measured. This is typically the beginning of a price move or the lowest point of a decline. | Yes | — |
| End Price | The ending price of the price range where retracement is measured. This is typically the end of a price move or the highest point of an advance. | Yes | — |
| Current Price | The current price value used to assess how much of the price range has been retraced. This price is compared to the range to calculate the retracement percentage. | Yes | — |
| Retrace Target Logic | The comparison operator used to determine whether the calculated retracement percentage meets the condition for execution. Options include Greater Than, Greater Than Or Equal, Less Than, Less Than Or Equal, Equal, and Not Equal. | Yes | — |
| Target Retrace % | The target retracement percentage that the calculated retracement must meet based on the specified operator. For example, set to 61.8 for the golden ratio Fibonacci level. | Yes | — |
| Decimal Places | The number of decimal places to use when calculating the retracement percentage, controlling the precision of the output value. | Yes | — |
Outputs
| Output | Description |
|---|---|
| Retrace % | The calculated retracement percentage of the current price within the specified price range. Calculated as ((End Price - Current Price) / (End Price - Start Price)) × 100. |
Tips
Connect the Start Price and End Price inputs to the outputs of other rules (such as Highest Price and Lowest Price) to create dynamic retracement calculations that automatically update as the market moves. For Fibonacci-based strategies, set up multiple Price Retrace rules targeting 38.2%, 50%, and 61.8% retracement levels to identify the most likely reversal zones. Use the “Greater Than Or Equal” operator when you want to trigger as soon as price reaches or exceeds a retracement level.
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