Fifty Percent Principle A principle that predicts that, before the observed trend continues forward, a price correction of approximately 1/2 to 2/3 of the change in price will occur. Investopedia Says: Also known as a "one-half retracement," this correction is considered to be the normal course of uptrends as investors are initially weary and taking some profits. Related Terms: Correction Exponential Moving Average - EMA Fibonacci Retracement Moving Averages Retracement Simple Moving Average - SMA Technical Analysis Trend Trend Analysis |