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Technical Studies Reference

Auto Retracement/Projection

Description

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The Auto Retracement/Projection study automatically calculates and displays retracement or projection lines based upon the High to Low price range for the specified time period.

The time period is set with the Time Period Unit and the Time Period Unit Length Inputs.

For each bar in the chart, the High and Low for the specified time period is determined up to that bar and not beyond, and the percentages specified with the Level 1-14 Percentage Inputs are used to calculate the retracement/projection lines for that bar.

When the Calculation Method is Retracement and the High is the reference value, controlled by the Calculation Reference Value Input, each of the percentages are multiplied by the High to Low price range and added to the Low to create the retracement levels.

When the Calculation Method is Retracement and the Low is the reference value, controlled by the Calculation Reference Value Input, each of the percentages are multiplied by the High to Low price range and subtracted from the High to create the retracement levels.

As the High to Low price range changes for the time period, then the retracement/projection levels will also change because the price range is changing.

When the Calculation Reference Value Input is set to Automatic, then in the case of either a Retracement or Projection calculation, the study looks at the opening price for the time period and compares it to the closing price of a bar to know whether the Retracement or Projection lines should be calculated from the High or the Low price.

In the case when prices are declining and the Calculation Method is Retracement, then the Retracement lines are calculated from the Low of the period. In the case when prices are rising and the Calculation Method is Retracement, then the Retracement lines are calculated from the High of the period.

When the Calculation Reference Value Input is set to Automatic, then during the time period for which the Retracement/Projection lines are for, if there is a change with the relationship between the Open price for the time period and the current Close/Last price at a bar, then this will cause at that bar a reversal of the calculations which are described in the prior paragraph.

For example, the Close was previously above the Open, but on the bar currently being calculated it is below the Open. This will cause a reversal of the calculation.

Inputs

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  • Time Period Unit
  • Time Period Unit Length
  • Calculation Method: This Input sets the calculation method. This can either be Projection or Retracement. A Projection places the lines going upward from the Period High. A Retracement places the lines going downward from the Period High.
  • Level 1-14 Percentage: This Input specifies the percentages for the Retracement/Projection lines. .01 equals 1%.
  • New Period at Day Session Start When Using Evening Session: When this Input is set to Yes and Evening Session Times are defined in the Session Times, then the calculation will reset and there will be a new period at the beginning of the evening session. This only applies to Intraday charts.
  • Calculation Reference Value: This sets the reference level for the retracement/projection line calculations to be either Automatic, or specifically from the High or the Low for the specified time period.
  • Round to Nearest Tick Size: When this Input is set to Yes, then the retracement/projection levels are rounded to the Tick Size setting in Chart Settings.
  • Reference Single Subgraph: This Input is used when the Auto Retracement/Projection study is set to be Based On a study other than the main price graph. In this particular case, when this Input is set to Yes, then the first Subgraph that Auto Retracement/Projection study is set to be based on, will be used. This is necessary for this study to function properly.

    When the Auto Retracement/Projection study is based on another study and that study has not set values in its Subgraph at each chart bar and those Subgraph values are at a zero value, then this will affect the output of Auto Retracement/Projection study at those chart bars causing it to display invalid values. While this is not the most ideal solution for this kind of condition, the solution to this is to set the Scale Rangefor the Auto Retracement/Projection study to Same as Region to prevent those invalid values from affecting the display of the study.
  • Number of Days to Calculate: This Input specifies the number of days to calculate the Retracement/Projection for. This value is always in Days regardless of the Input setting Time Period Unit. In order for the calculations to be correct, this value must be at least the number of days covered by the Time Period Unit and the Time Period Unit Length. For example, if the Time Period Unit is Weeks and the Time Period Unit Length is 2, then the Number of Days to Calculate should be set to a value of at least 14.

    Additionally, as new chart bars are added to the chart during updating, the number of days that the study is calculated over will gradually increase corresponding to those new bars added to the chart. In this case you will need to select Chart >> Recalculate to cause the chart to only calculate across the Number of Days to Calculate.

Basing Auto Retracement/Projection on Another Study

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The Auto-Retracement/Projection study by default uses the Open, High, Low, and Last data from the Main Price Graph for its calculations. One method that can be used to base the calculations on another study is described above when the Reference Single Subgraph is set to Yes. The following instructions can be used to base the Auto Retracement/Projection calculations on another study in which at least 2 subgraphs are available that can establish the High and Low values for the retracement/projection.

In the following instructions the study Volume Value Area Lines is used for example purposes only. Multiple studies could be used instead of just one if desired. Additionally, Open and Close values could also be established from other studies/data.

  1. Add the Volume Value Area Lines study to the chart and set the Inputs as desired. In this case the assumption is that this is the first study and therefore has an ID of 1 (ID1). This may need to be adjusted for specific implementations.
  2. Add the Spreadsheet Study to the chart and set the Inputs as desired. Set the option to Hide the Spreadsheet Study.
  3. Select the spreadsheet for the Spreadsheet Study and enter the following in Row 3 for the respective columns:
    • Column K: =ID0.SG1@3 (Main Price Graph Open)
    • Column L: =ID1.SG2@3 (Volume Value Area High)
    • Column M: =ID1.SG3@3 (Volume Value Area Low)
    • Column N: =ID0.SG4@3 (Main Price Graph Close)
  4. Add the Auto Retracement/Projection study to the chart.
  5. Set the Based On option to the Spreadsheet Study.
  6. Set the other Inputs as desired.
  7. Select OK to exit the Auto Retracement/Projection Settings window.
  8. Select OK (if necessary) to close the Analysis window.

*Last modified Sunday, 29th January, 2023.