Quote:
Originally Posted by ingvardagmar
Mr. TRO teach that lower low mean uptrade ovor and higher hi mean down trend over.
|
I definitely wouldn't agree with that statement at all. Obviously it greatly depends upon which timeframe that comment is aimed at.
Sometimes it can be an accurate observation, other times totally incorrect.
Prices very often makes higher highs & higher lows on say an hourly timeframe (in an uptrend), stall out temporarily & print a lower high & lower low, only to reverse quickly & continue in it's original direction. Does that indicate the dominant trend is done?
No.
It simply means that in the short term traders have consolidated their profits & are assessing the conditions.
You can't make sweeping statements like the one you quoted & expect to build any kind of solid plan around it. Trading doesn't work like that in the real world unfortunately.