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

Trend Analysis

reversals, Corrections, and retracements

Reversals and retracements imply a turnaround in prices, and may be of any

amount or degree. Corrections and pullbacks tend to imply a more shallow rever-

sal or retracement, usually no more than a few percent.

trends in terms of ohLC Data

Trend may also be defined in terms of individual open, high, low, and close

(OHLC) data. Figure 5.10 depicts various trend activity with respect to the high,

low, close, and mid/typical prices. Although we see that the market is flat in terms

of peak and trough analysis, that is, there is no evidence of successively higher or

lower peaks and troughs, we cannot deny the presence of some form of trending

figure 5.9 Reversal of All Subwaves.

figure 5.10 Trend Based on OHLC Data.