The RELATIVE RETRACEMENT™ indicator identifies price support and resistance levels by comparing data on recent inflection points with past price activity. The RELATIVE RETRACEMENT indicator measures the distance between an interim high, the most recent higher high, and an intervening low, or an interim low, the most recent lower low, and an intervening high, applies a series of pre-defined calculations to the difference, and then projects these values from the point of reversal. These results yield different levels of support and resistance in the market, and suggest how a financial asset is likely to respond.

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