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Great Ebook,
explains in details al types of charts used in technical analysis,
from the ebook: A typical 1-2-3 high is formed at the
end of an up-trending market. Typically, prices will make a final high
(1), proceed downward to point (2) where an upward correction begins;
then proceed upward to a point where they resume a downward movement,
thereby creating the pivot (3).
There can be more than one bar in the movement from point 1 to
point 2, and again from point 2 to point 3. There must be a full
correction before points 2 or 3 can be defined.
The number 2 point of a 1-2-3 high is created when a
full correction takes
place. Full correction means that as prices move up from the potential
number 2 point,
there must be a single bar that makes both a higher high and a higher
low than the preceding bar or a combination of
up to three bars
creating both the higher high and the higher low. The higher high and
the higher low may occur in any order. Subsequent to three bars we
have congestion. Congestion will be explained in depth later on in the
course. It is possible for both the number 1 and number 2 points to
occur on the same bar.
To see the graphics and for more details, Download the ebook from
the link below
Download:
Right Click on the PDF image below to then click "Save
Target As..." from the drop-down menu.
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