Relative Retracement Parameters
The TD Relative Retracement study also has Date and Time parameters, which
identify the date and time of the reference bar. As with any trend line drawing
function, the process of drawing a Relative Retracement study involves selecting
a reference bar, and selection specifies the Date and Time parameters.
This trendline type draws one or more horizontal lines representing fractional
retracements of a prior price excursion.
Given a selected high or low (opens and closes are not eligible anchor points
for this study), the software looks back for a prior bar having a higher high
or a lower low, respectively. If no such bar is found on the portion of the
displayed chart, no line is drawn because the software does not look at the data
that is not displayed. Having found such a bar, all the bars between that bar
and the anchor point bar (inclusive) are scanned to find the bar having the
lowest low (if a high anchor) or highest high (if a low anchor). The close of that
bar is taken as the magnet price.
A trendline is drawn from the anchor point bar rightwards to the end of the
visible chart or until one of these conditions occurs:
1. The trendline is penetrated by a price bar (price falls below the trendline,
in the case of a trendline below the anchor price, or exceeds the line, in the
case of a line above the anchor price). Penetration must be by at least N
ticks, for selectable N. Optionally, penetrations may terminate the line only if
they are
2. The trendline is canceled according to one of the same three optional
cancellation rules available for TD Lines.
Trend Line options include:
1. Number of ticks needed to penetrate trendline.
2. Whether to continue past disqualified breakouts.
3. Enable/disable three TD Retracement Qualifier conditions (as per TD Lines)
4. TD Retracement Qualifier penetration parameters as per TD Lines.
5. Enable/disable three cancellation conditions (as per TD Lines).
6. For each fraction level, whether to draw a line and a line color.
