This is accomplished by examining at least the previous 100 or so rallies, and plunges in the timeframe to be studied. By observing the number of points before a retracement occurs on average, we can accu rately judge when a move is probably over and ready to begin a retracement. For example, if we observe that for the previous 100 rallies prices in a 5-minute chart moved an average of7 points -then we know that after market prices have moved 6 points, the professional5-minute traders will usually be looking to take profits.