The smaller the number, the better. Some institutions use negative numbers to indicate retracement, while others use positive numbers to indicate retracement. Generally speaking, the smaller the absolute value of a number, the better. For example, a chicken with a price of 1 yuan will become 0.9 yuan when it retreats to 10%, and 0.8 yuan when it retreats to 20%. A small retreat is a good chicken!

Retreat is a common term in daily transactions, which refers to the reduction of funds in an account. Some transactions may lose money, which everyone needs to accept. Therefore, the withdrawal of funds is naturally a fact that people must accept. Retreat occupies a large part of trading time, even in the period of expanding profits.

Extended data

Move backwards

Retreat is only a simple function of probability and expected return, and the result is often established. There is still a part of funds that can be controlled, which is caused by the implementation of trading plans and market conditions. In fact, the withdrawal of funds can be attributed to the bad trading strategy, or the market environment is not conducive to the strategy, so we need to take a break.

Generally speaking, retracement usually occurs when encountering difficult trading conditions and minor trading errors. For example, traders may encounter problems when trying to break through the range and need to take a step back.

Baidu Encyclopedia-Maximum Retreat Rate