One is the price, which refers to the ratio of a trend after one-way operation to the extreme value, and the subsequent reverse callback in this trend (the maximum callback range is 100%). For example, soybean meal rose from 1000 to 2000 and began to fall. After falling to 1900, it will resume rising, which is called retracement 10%, and after falling to 1500, it will resume rising, which is called retracement 50%. The same is true of the downward trend, but it is sometimes called the rebound rate. This ratio is generally used to do price change analysis, and analyze where the reverse pull-back sports meet with support or resistance, such as the golden ratio withdrawal.
The other is financial, which means that after a period of profit, the book of funds begins to lose money, and until a certain moment, profits begin to appear again. The ratio of the current loss to the total amount of funds before the loss is the rate of capital withdrawal. For example, the original capital of the account was 2 million, and a loss of 200,000 occurred in a certain period of time, that is, the capital was withdrawn 10%. This is generally used for risk control and fund management. For example, the common proportion of some hedge funds is that the daily loss cannot exceed 2% of the total funds, and the monthly loss cannot exceed 6% of the total funds.