SFX Algo Toolkit: Retracement Wave

The Retracement Wave is used to identify entry points during pullbacks in trending markets. It can also be used to find exit points for open trades. The wave is bullish when price is above it and bearish when price is below it.

Usage

The retracement wave can be used as an area to enter during a pullback in a trending market. The wave can also help manage risk and close out positions.