Peaks And Troughs
by Martin J.Pring
The oldest ways of chart analysis had to work in the days before computers (B.C.).There Ős no reason they shouldnŐt work now. HereŐs a look at peaks and troughs, a classic form of chart analysis that worked B.C. and work now.
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.