This example deals with NQM20 daily chart and the ONE44 78.6% rule.

When we use the last long term direct move up from the Dec. 2018 low to the all-time high, you can see that the bottom on 3/23/20 retraced 78.6% of this move at 6645.00 (1). You can also see that the biggest rally on this massive break came at the 38.2% level at 8250.00 and if you went back even father in time you would see other retracements that came into play, but to keep the chart clean we are just going to use the most recent levels. As we said the low on 3/23/20 was 78.6% and the 78.6% rule states as follows, that any time 78.6% is hit you should look for a return retracement of 78.6%. From this low that target would have been 9100.00 (2). At that time it did seem like an outrages target, but that is exactly where it went. So, now we have the same scenario in the opposite direction, because 9100.00 is 78.6% we will look for the same in reverse. The target is 7200.00 (3). This too seem like a outrages call, it could happen quickly, or it can take months, time will tell. As always we will watch all the retracement on a break from 9100.00 to see just how weak, or strong this market is.

NQM20 Daily