thE hAnDbook of tEchnicAL AnALySiSIt should be noted that the directions of the prior and subsequent larger trends
are wholly determined using conventional peak and trough analysis (and in the
absence of visible peaks and troughs, slope analysis is applied). In Figure 9.16, the
subsequent larger trend represents a continuation of the current larger trend and
a reversal of the prior larger trend.
9.2.5 Continuation and reversal indications
independent of price Direction
As we have already seen, confirmation and non‐confirmation depend on whether
there is any directional agreement between the data series or otherwise, where
confirmation suggests a potential continuation of the current larger trend.
Figure 9.15 Reversals Based on Adjacent Trough to Trough Analysis.
Figure 9.16 Reversals and Continuation Based on Adjacent Peak to Peak Analysis.