Price As A Trading Tool
by Robert Miner
A complete approach to trading requires the trader to analyze the market from all perspectives. The
three important dimensions of market activity are time, price and pattern. If a trader does not include all
three perspectives of market activity as part of his analysis, trading is likely to suffer. Price relationships
indicate in advance narrow price zones that are particularly important to any individual market. Every
trader should be aware of three important price relationships relative to market activity: Price Cycle
Ratios, swing price relationships and price percentage change relationships. Any of these price
relationships may result in at least temporary support or resistance. More important price objectives will
result when a coincidence of price relationships will occur from one or more of the three methods. Please
take note that these price relationships are all determined in advance, so that the trader will be prepared in
advance for price zones where support and resistance may unfold.
PRICE CYCLE RATIOS
Price Cycle Ratios (PCR) are divisions of a price cycle by important ratios. One aspect of Price Cycle
Ratios traders should be familiar with are ratio retracements, which is the percentage relationship of a
countertrend move or correction relative to the preceding trend swing.