FOREX TRADERS

[ElderWolf]

In my neck of the woods, the 50% line is considered fairly neutral. 38% and 62% are the key lines. In a lot of cases, when price breaks either of these lines, you're looking at price making a full retracement/extension (0% when it breaks 38%) or (100% if it breaks 62%).

In some circles, people set their stop loss at the 50% line as it makes for a very nice profit to loss ratio.