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The 1% Law is a Percentage Growth Method used to determine change of direction of price or index in business, finance, investment, or economics.
When the Growth Factor becomes less than 1% during an interval or period of time, change of direction is indicated. This can happen on both sides of the 0 Line. If the Positive Percentage Growth coming down "brakes" the 1% Growth, the change of direction indicated is down. Conversely, if the Negative Percentage Growth coming up "brakes" the -1% Line, the change of direction indicated is up. The 1% needs "Time Calibration" to work. A stock or index needs distance in time for more than 1% Growth to happen. If Microsoft stock doesn't do more than 1% growth for a week, try 2 weeks or 3 weeks. When the Percentage Growth "brakes" the 1%, direction change happens.
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