cfdr - 9/14/2014 16:06 I see where this can be confusing. I use the retracement tool in a reverse way to look for S&R levels and a possible target. So, I put the 1.000 line at the start of the trend and pull the lines down until I see something that looks like the market "knows" where the first few retracement lines are. The zero line then becomes the possible target instead of the starting point. It's just my way of trying to anticipate the significant levels, and I've not seen it done elsewhere like this - so - it is definitely FWIW. Again, in the first of the two charts, I drew the lines sometime in the spring of 2013, and the target looked possible at about 4.50. When that did appear to be the area that stopped the price decline (for a while), the retracements back to the .250 and the .382 lines gave me more confidence that the area around 4.50 was significant. Then, as I posted here early this year (as I remember), *if* that low was taken out, it might be the case of "cheap is half-way there." So, looking at the second chart, I put the 1.000 line at the top again, and I put the 4.50 price as the .500 line - that gave me the possible target at 2.87. Does that explain what you asked? Remember, these numbers are only potential target areas (to me). I'm just trying to get an idea about where the trend might stop. And, often trying to do this in real time to actually make a prediction can be a frustrating experience. But - sometimes, at least, the market seems to know where it wants to go. That is what makes it so interesting.