In up-trend if you have two prices level height A at £10 and height B at £10 which price level at this point you would validate as higher high for or higher low for height B

Hi, i wanted to ask a quick question. In up-trend if you have two prices level height A at £10 and height B at £10 which price level at this point you would validate as higher high for or higher low for height B.

10+1? I may have not understood the question.

A price is only a higher high if its higher than the previous high. Price A was a higher high than previous price highs at £9, £8, £7, etc. but B is not a higher high than A.

But on its own that does not mean the trend has failed, and it is not an indicator of a reversal or range.

If B prices equal to A would it consider lower or higher?

Neither. Its neither higher nor lower, you said it is equal.

I think its possible we’re circling the question without answering your problem. What is the context? What are you trying to learn from the chart? How do you intend to trade based on this chart formation?

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Let say if i was to draw a divergent line from point A prices lvl $10$ And point B prices $10 do i consider point B is lower then point A or higher?

When high A was achieved, then there would have been a low point prior to that which had been identified as a significant low.

When high B is then reached there must have been some kind of drop in price between point A and this new point B. Whilst there is no new high here, there is a question whether one should now consider this new low point between A and B as a revised significant low?

If that is the question then the answer can only be - it depends! :slight_smile: Can’t really say without seeing the actual situation.

Edit: seems this wasn’t actually the question! :smiley:

I don’t see how two identical levels can be higher or lower. But subsequent price action may well show whether this was a failed attempt at a new high or just a temporary stage on the way towards a new high.

I like that Manxx, thanks. I think we need a bigger picture.

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Yes, Manxx my question is what u have mentions above. If i apply this to dow theory with two peak A and B at the same prices level? Would i consider B to be equal or lower at this point?

[quote=“anhkool, post:9, topic:145397”]
If i apply this to dow theory with two peak A and B at the same prices level? Would i consider B to be equal or lower at this point? [/quote]

I am not by any means a Dow theorist and never apply it to my own trading (I’m not saying there is anything wrong with it).

But my layman’s logic would suggest that peak A is still the HH until another exceeds it. But I think Dow’s theory also considers that a trend has only stopped once the last HL is breached on the downside. So I guess the issue is more focused on what was the latest HL - before A or between A and B.

I can’t answer that - a chart would help and are there any Dow experts out there that could advise?

What if i apply this two price level A = 10$ and B = 10$ to divergence rules. Would point B be a new HH (consider prices point B higher then point A) which give a bearish reverse signal or HL (consider prices point B lower then peices point A) bearish contiuation signal?