FNCE 2132 Chapter Notes - Chapter 2: Bar Chart, Fibonacci Number
12 Oct 2017
School
Department
Course
Professor
Document Summary
Chapter 2 the trend is your friend. A trend represents the direction a market is moving: no market moves in a straight line! Uptrend = rising peaks (highs) and troughs (lows) as long as each peak is higher than the prior peak and the successive trough is higher than the proceeding trough. Any failure to exceed a previous high is an early warning of a possible trend reversal. Any downside violation of a prior low is usually confirmation that a trend reversal has in fact taken place. The ability of a price to hold above a previous low point followed by a penetration of a prior high point is necessary to signal a reversal of the proceeding downtrend. Support = reaction low or trough that was formed in the past: prices bounce off the support level = prior low that was formed before, support is always below the current market.
