I have just finished a new theory article on ZigZags for beginnertrader.com, here is a preview, the full version can be found here.

One the most basic concepts in trading are peaks and troughs (for a nice explanation see the Peaks and Troughs e-book in the e-book library), price never moves in straight line for very long, and so taking note of peaks and troughs and their relationship with each other can provide an early signal into future market direction. The beauty of peak and trough analysis is that it is based on price action itself, meaning there is no lag with signals generated. The 123 method mentioned previously in a theory article relies on this analysis for it's signals, and can prove to be a very good way to pick trend reversals.

The challenge with peak and trough analysis is actually identifying where the major peaks and troughs are, filtering out the noise that is inherent of a liquid market. Thankfully there is one indicator which can help us with this [...]

I'll have some announcements in regards to the direction this blog takes in the upcoming days :)

Happy trading!

This entry was posted on Thursday, March 02, 2006 at 11:41:00 AM. You can skip to the end and leave a response.