Stocks &Commodities V. 8: (30-36): Peaks And Troughs by Martin J. Pring



Download 180,91 Kb.
Pdf ko'rish
bet2/7
Sana09.04.2022
Hajmi180,91 Kb.
#538980
1   2   3   4   5   6   7
Bog'liq
2 5201710973236286502

Rising peaks
and troughs
Rally fails to
make a new high
Declining peaks
and troughs
now signaled
A
B
Rising peaks
and
 troughs now
signaled
Price falls below D,
but rising peaks 
and
troughs still intact
D
C
E
F
Rising troughs
broken, but not
rising peaks
Rising peaks
and troughs
now broken
X
Y
FIGURE 1: USE PEAKS AND TROUGHS TO DETERMINE TREND.
As peaks and
troughs rise, trend is up. As they fall together, trend is down.
FIGURE 2: A NEW TREND.
A trading range, or “line” in Dow parlance, is broken
when both peaks and troughs start to rise.
FIGURE 3: REVERSAL.
An uptrend is reversed when both peaks and troughs
head south.


Stocks & Commodities V. 18:5 (30-36): Peaks And Troughs by Martin J. Pring
Copyright (c) Technical Analysis Inc.
As you can see from the price
action at point F, there is noth-
ing to stop the price from falling
below the trend reversal signal
(E), but pricing will still be con-
sistent with a rising trend.
H
ALF
-
SIGNALS
On occasion, we are left in doubt
whether a trend has reversed. In
Figure 3, we see that at point X
the latest trough breaks below
its predecessor, but not the latest
peak — and only half a signal
has been given. What is now
required is for a fresh rally to
peak below the previous top and
for the price to slip below the
previous low at point Y. This is
a much less timely signal be-
cause the price will have already
fallen from the final high; but by
the same token, the probabili-
ties of it being a valid reversal
are that much greater. Anyone
not waiting for the signal at Y
would have run the risk of being
left out of a powerful rally such
as the hypothetical one shown
in Figure 4. In that instance,
prices rose and made a new peak,
indicating the trend had never
reversed in the first place. Half-
signals also appear when a trend
reverses from down to up.
Peak and trough analysis
should be treated as only one
indicator among many in a tech-
nical arsenal. You would not
normally rely solely on a mov-
ing average crossover, oscilla-
tor signal, or trendline violation
to justify entering a trade; simi-
larly, peak and trough should be
used in conjunction with other
indicators.
The difference with peak and
trough analysis is that indicator
for indicator, it generally offers
a stronger signal than most trend-
following techniques. This is
because technical analysis is
very much concerned with the
psychology that underlies price
movements. The fact that a re-
versal from a downtrend to an
ANDREW VANDERKAAR


Stocks & Commodities V. 18:5 (30-36): Peaks And Troughs by Martin J. Pring
Copyright (c) Technical Analysis Inc.
uptrend requires a successful test of a low followed by a move
to a new high, and offers a strong psychological signal that
confidence and optimism have returned to the marketplace.
The same is true from a down to up reversal.

Download 180,91 Kb.

Do'stlaringiz bilan baham:
1   2   3   4   5   6   7




Ma'lumotlar bazasi mualliflik huquqi bilan himoyalangan ©hozir.org 2024
ma'muriyatiga murojaat qiling

kiriting | ro'yxatdan o'tish
    Bosh sahifa
юртда тантана
Боғда битган
Бугун юртда
Эшитганлар жилманглар
Эшитмадим деманглар
битган бодомлар
Yangiariq tumani
qitish marakazi
Raqamli texnologiyalar
ilishida muhokamadan
tasdiqqa tavsiya
tavsiya etilgan
iqtisodiyot kafedrasi
steiermarkischen landesregierung
asarlaringizni yuboring
o'zingizning asarlaringizni
Iltimos faqat
faqat o'zingizning
steierm rkischen
landesregierung fachabteilung
rkischen landesregierung
hamshira loyihasi
loyihasi mavsum
faolyatining oqibatlari
asosiy adabiyotlar
fakulteti ahborot
ahborot havfsizligi
havfsizligi kafedrasi
fanidan bo’yicha
fakulteti iqtisodiyot
boshqaruv fakulteti
chiqarishda boshqaruv
ishlab chiqarishda
iqtisodiyot fakultet
multiservis tarmoqlari
fanidan asosiy
Uzbek fanidan
mavzulari potok
asosidagi multiservis
'aliyyil a'ziym
billahil 'aliyyil
illaa billahil
quvvata illaa
falah' deganida
Kompyuter savodxonligi
bo’yicha mustaqil
'alal falah'
Hayya 'alal
'alas soloh
Hayya 'alas
mavsum boyicha


yuklab olish