FTB-C000653 / Formula component

Opposing Peak Retracement

Opposing Peak Retracement is the rise from the comparable bottom level to the intervening peak expressed as a fraction.

Intermediate Formula defined 1 linked topicEvidence-reviewed

Definitions

In plain terms

The middle peak must rebound far enough to separate the two low tests.

Technical

retracement = (intervening_peak - mean_bottom_level)/mean_bottom_level and it must be >= 0.05.

Scope

A small bounce inside a decline can fail the retracement rule even when two lows are visually nearby.

Formula

retracement=(intervening_peak-mean_bottom_level)/mean_bottom_level
LaTeX: r=\frac{v-\bar p}{\bar p}
SymbolMeaningUnit
vopposing peakprice

Output unit: fraction

Examples

  • A reviewer computes Opposing Peak Retracement on a deterministic close fixture and checks pivot timing, threshold equality, neckline behavior, and rejection diagnostics before publication.

Common misconceptions

  • A small bounce inside a decline can fail the retracement rule even when two lows are visually nearby.

Concept relationships

Prerequisites

Related

Required by

Where this concept is used

Evidence and governance

  1. Members' Guide to 2021 Refresher Readings CFA Institute · first party methodology

    Supports: preferred label, short definition, technical definition, formula

    Limits: The curriculum does not prescribe this package's pivot window, numeric thresholds, causal state machine, or performance claim.

  2. Foundations of Technical Analysis: Computational Algorithms, Statistical Inference, and Empirical Implementation Lo, Mamaysky, and Wang · first party technical publication

    Supports: preferred label, short definition, technical definition, formula

    Limits: The paper's smoothing, sample, and empirical design are not copied into this package and do not validate its thresholds.

  3. Pine Script repainting concepts TradingView · official platform documentation

    Supports: preferred label, short definition, technical definition, formula

    Limits: Platform display behavior does not establish financial usefulness or predictive value.

  4. scipy.signal.find_peaks SciPy · first party technical publication

    Supports: preferred label, short definition, technical definition, formula

    Limits: This retrospective signal function is not itself a causal OHLC pivot detector.

  5. Pine Script pivot techniques TradingView · official platform documentation

    Supports: preferred label, short definition, technical definition, formula

    Limits: The package freezes its own equality, separation, and OHLC policies rather than claiming one universal pivot definition.

  6. Zig Zag indicator QuantConnect · official platform documentation

    Supports: preferred label, short definition, technical definition, formula

    Limits: This package selects a close-only percentage-reversal variant and documents the difference.

  7. LEAN ZigZag source QuantConnect · first party technical publication

    Supports: preferred label, short definition, technical definition, formula

    Limits: A maintained implementation is evidence for one convention, not a universal market rule.

Reviewed by
fintech-builder-batch-012
Last reviewed
2026-08-10
Next review
2027-08-10
Record status
evidence reviewed

This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.

Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.