Monday, June 16, 2008

CNBC Weekly Bonus Bucks Quiz: A series of higher highs and higher lows signals what kind of trend?


CNBC Weekly Bonus Quiz

A series of higher highs and higher lows signals what kind of trend?
Answer: Uptrend

The idea of a trend is so intuitive as to never get a formal definition in technical analysis, even not in the classic Technical Analysis of Stock Trends by Edwards and MacGee. Sperandeo makes the following definition,

* An uptrend is a sequence of rallies to successively higher highs, punctuated by pullbacks, with each pullback low ending above the previous pullback low.








A series of higher highs and higher lows signals what kind of trend?