Dow tenet "A trend is assumed to be in effect until it gives a definite signal of reversal". Though there are many trend reversal signals like candlestick pattern, trendlines, support/resistances and indicators, we can use peaks and troughs to confirm it in a better way.
Uptrend - Higher high(peak), higher low(trough)
Downtrend - Lower low(trough), lower high(peak)
Uptrend - Price action forms rising peak and rising trough
Downtrend - Price action forms decling peak and declining trough
In my post "Arvind facing strong resistance", price action moved upwards eventhough trendline
was broken and RSI showed less momentum. I checked where my analysis went wrong and found
it didnt break the previous higher low.
Uptrend - Higher high(peak), higher low(trough)
Downtrend - Lower low(trough), lower high(peak)
Uptrend - Price action forms rising peak and rising trough
Downtrend - Price action forms decling peak and declining trough
In my post "Arvind facing strong resistance", price action moved upwards eventhough trendline
was broken and RSI showed less momentum. I checked where my analysis went wrong and found
it didnt break the previous higher low.
Trade active:
1/23/2017 short @363 with stoploss 366
Comment:
Target 1 reached.
Trade closed: target reached:
Closed on target 1.