Establishment Of Trends
September 1st, 2010
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"Uptrends have higher highs and higher lows; downtrends have lower lows and lower highs. The question arises: How many higher highs for an uptrend and how many lower lows for a downtrend? I prefer to see at least two higher highs for an uptrend and two lower lows for a downtrend.
For and uptrend, if I see only one higher high and higher low, I rate that as only a ‘potential uptrend”. Naturally, in a downtrend, I want to see at least two lower lows; one lower low, lower high… I rate a potential downtrend."
~ Ray Barros
Book: The Nature of Trends:
Strategies and Concepts for Successful Investing and Trading
