The Handbook of Technical Analysis + Test Bank_ The Practitioner\'s Comprehensive Guide to Technical Analysis ( PDFDrive )

thE hAnDbook of tEchnicAL AnALySiS

An example may help illustrate this point. See Figure 9.1. In the process of try-
ing to gauge direction using adjacent peak to peak analysis, we need to determine
if the subsequent peak is higher, lower, or flat with respect to the previous peak.
Similarly, when comparing adjacent troughs to establish direction, we must
determine if the subsequent trough is higher, lower, or flat with respect to the pre-
vious trough, as depicted in Figure 9.2.

Figure 9.1 Defining Direction Using Adjacent Peaks (Highs).

Figure 9.2 Defining Direction Using Adjacent Troughs (Lows).