Percentage penetration

[MrNoodle]

Am reading through Murphy for the first time, so apologies in advance for the continuing series of dumb questions.

A couple of times now he's referred to traders requiring up to 3% penetration of previous S/R for confirmation. My question is 3% of what?

 

[barjon]

hi, MrN

ooer, almost deleted the thread when i saw the title

i take it as 3% of the s/r price ie: support at 100 then 3% = 3 points

cheers

jon