I have always thought that, in general, the simplest techniques work the best. High up in this category, and perhaps the most underrated, is the concept of peak and trough analysis, a technique first brought to our attention as a tenet of Dow theory. While the theory itself has lost much of its luster in recent years, the peak and trough part of it has not. It is arguably the most important building block of technical analysis.

When you look at almost any chart, it’s fairly evident that prices do not go up and down in straight lines, but move in zigzag patterns instead. During a bull trend, a rally is interrupted by a correction in which part of the advance is retraced. This is then followed by another rally, after which a subsequent correction follows, and so on….

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Reply jack Says
2 1

this is oldest way of forex chart analysis, but any way it is useful yet

user image Reply Nam-seon Says
0 1

Yes i agree , for example Dow theory is dow theory and if 1000 years past and forex market remain! it will be useful again!



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