What is the 50% rule?

[adaseb]

This sounds alot like Fibonacci levels except 50% is used but not officially part of that system of measuring retracements.   Its quite a reasonable way to measure strength in a rapid way, very often used by short term or day traders.

Bircoin went to $1200 and then dropped to $180.
Bitcoin went to $20k and then dropped to $3300.

Both of those highs I consider in a kind of error condition, Mt Gox was fractional reserve undeclared and 20k revolved around a freeze up of the blockchain where transactions would never clear properly without a ransom to excessive fees.   I hope neither happen again as it could easily lead to a negative take if repeated rather then corrected and avoided.   The prices around here, last summer and now are what I consider the real volume to work through.

The 50% is part of the Fibonacci retracements. The most common fib retracements are 0.382, 0.500, 0.618. However I can't remember the last time I used a Fib retracement to trade. I think I used in a few times on the daily or weekly charts and maybe in the stock market but rarely is it to be used on the hourly charts. Not good for day trading at all.

I think the indicator works as long as it seems like a common area where to take a long or short. However it usually works best if its near a regular horizontal support/resistance line. Basically cannot trade alone on Fibonacci retracements, maybe use it for confirmation and nothing else. I back tested so many forex, stocks in the past and its not a trade TA to be honest.

[1715001935]

1715001935

[1715001935]

1715001935

[1715001935]

1715001935

[1715001935]

1715001935

[Pamadar]

Also do not trust my analysis !!
Why?  
Well, here is your answer:

First Trump took the corona, the next two cases were about money laundering and the federal court ruled against them, so my question is which one of your analysts predicted these cases?
Also, who predicted the arrival of Corona?
So go ahead with your own intellect and logic and enjoy the market to the fullest.

Your analysis is good but of course there is no guaranty in a highly volatile market, I commend you for posting a disclaimer you are right nobody can predict the future accurately, who would have thought the coming of Corona Virus, investors like us can only predict  what happen in the world economy but not a pandemic that creates confusion in the business and economic sector.

There's none at all, there's no clear directions  as volatile market exist. You need to keep doing your research and follow the patterns that you understand the most. Investors and traders always seeking for a good path to take their money, each news which impacting to entire industry needs to sort out and deal with heavy research to avoid making mistakes.

[posi]

First, the rules is 50% or pullback which was the language used in the technical analysis is to stop loss but crypto is always expected to experience pullback anytime even if the corona virus issue doesn't occur.
Second, every market analysis is a prediction and cant be totaly rely on and I dont see any reason to trade base on someone else experience in trade not talk about totally trust in a newbie analysis.

[Mahanton]

Also do not trust my analysis !!
Why?  
Well, here is your answer:

First Trump took the corona, the next two cases were about money laundering and the federal court ruled against them, so my question is which one of your analysts predicted these cases?
Also, who predicted the arrival of Corona?
So go ahead with your own intellect and logic and enjoy the market to the fullest.

Im much aware with that 50% pullback on technicals which its been pretty common to make up some re-entry into these points but basing of into my experience with crypto then its just on 50-50 hit or miss situation.
but if you do have some sort of good decision making skills on the right time then you would really ending up on this kind of strategy. About fundamentals or news then i dont really much care on it because
in crypto, these news arent neither relevant or not on price movements.It can even move unexpectedly without any news happening around.So its a matter of decision neither you do utilize
these things or not because for a unpredictable market its really always pain in the ass on minding off on what would be the next price on next minute.

[Viscore]

Yeah, I don't trust your analysis the same thing that I did to others, only I trust my instinct.

Nobody expect for corona virus(maybe) but some says it was already been planned before that I also pressume that some businessman or a few of them are already preparing for this.

Does the market suffer a huge drop during the pandemic? No, it's not because someone had already foresaw this to happen. I truly enjoy the market, everything is fine, and that 50% rule (as you'vesaid) is something that we never have to experience despite of the current situation.

[maxreish]

That pullback is not always happening but its your technique and I guess it is working on you. This pullback you are talking in 50% is also a good idea where we can set stop loss on that pull back. However, we can confirm this in other technical analysis too. It's because there are times there are no pullbacks and went down or up profusely.

[exstasie]

The 50% is part of the Fibonacci retracements. The most common fib retracements are 0.382, 0.500, 0.618. However I can't remember the last time I used a Fib retracement to trade. I think I used in a few times on the daily or weekly charts and maybe in the stock market but rarely is it to be used on the hourly charts. Not good for day trading at all.

Technically the 50% level is not a Fibonacci level. It just naturally fits perfectly between 38.2% and 61.8%.

Fib retracements are vital to Elliott Wave analysis, so I always chart relevant Fib levels and I find them extremely helpful. I am not purely an EW trader though. I incorporate lots of other methods like horizontal S/R, moving averages, Bollinger bands, etc. which I think is key to my success.

I think the indicator works as long as it seems like a common area where to take a long or short. However it usually works best if its near a regular horizontal support/resistance line.

Exactly. When you can find support and resistance levels where there is confluence among different methods, it's usually pretty powerful. When key Fib levels line up perfectly with horizontal S/R, it's usually a huge trading opportunity not to be missed.

That's really the ideal way to use any TA method, in combination with others.

[teosanru]

There is a rule in technical analysis called (50%).And it is called pullback.

Whenever the price reaches a peak, it can go down to 50% before the pump.
The same thing will happen again in falls.

In the morning, the price dropped from 11,500 to 11,200.
And after this fall, it rose to about 11,350.
Of course, we have a drop of up to 30%, but 50% is more common.


image Source:https://www.tradingview.com/symbols/BTCUSD/

And I also think there is strong resistance in 10950 and those who have bought below this price should not worry.

Also do not trust my analysis !!
Why?  
Well, here is your answer:

First Trump took the corona, the next two cases were about money laundering and the federal court ruled against them, so my question is which one of your analysts predicted these cases?
Also, who predicted the arrival of Corona?
So go ahead with your own intellect and logic and enjoy the market to the fullest.

Actually these 50% levels are nothing but a mean of the two Fibonacci levels which itself is actually formulated by applying a Standard Deviation on 50%. Without going deep into the topic. Simply saying that generally market respects the Fibonacci levels because they are mathematically derived values which exist universally. Even though they aren't 100% accurate but if you inculcate this pullback strategy properly in your studies you can usie it nicely. But yes another major issue generally traders face is the point from where you create this 50% pullback some generally take it from highest point of the previous trend while some take it from the most volumnous area of trade. So this is a pretty subjective point.