It's quite simple and is based on fractions of 7 hence its name.
The coefficients between a and a leg are different. Here are the rules for objectives.
- Pick the base (could be a key level or a support), this value is B
- Look for the first pullback level, measure distance between base and the pullback, this is D
- 1st objective: B + H*7/4 (high probabilty)
- 2nd objective: B + H*7/3 (med. prob)
- 3rd objective: B + H*7/2 (low prob.)
- 4th objective: B + H*7/1 (lowest prob., needs a strong momentum)
For objectives, the coefficients are not 7/4,3,2,1 but 7/5, then 7/4, 7/3 and 7/2, so the first objective is B - H*7/5. I will post a version of the chart if readers are interesting.
Want to know more? you can read this: http://www.edwards-magee.com/ggu/ruleofseven.pdf