Minor Highs
 Minor highs
The above figure shows what
most chartists call minor highs. Think
of minor highs as price peaks in a mountain
range of prices.
The odd numbers
in the figure show distinct price peaks in which price makes a lower high to each
side of it. Even points 2, 4, and 6 are
minor highs because they are the highest peak in several days. A good guideline is
to find peaks that have no higher price
within 5 days surrounding the peak. That’s 2 days before to 2 days after the
tallest peak.
Minor Lows
 Minor lows
The above figure shows minor lows. Think of minor lows as price valleys.
The even numbers show distinct
valleys but what about point 5? If you use a 5-day window (2 days before to 2 days
after) then point 4 shows a lower valley.
Thus, point 5 is probably not a minor low but one that is part of point 4.
In some cases, such as when
searching for an Eve peak or valley (see the Adam and Eve combinations of double
tops or bottoms) you might want to consider
valleys 4, 5, and 6 as a major low – a large rounding turn composed of a few
minor lows.
The most important considerations
for finding minor highs and minor lows is that you are looking for peaks and
valleys, ones that are distinct and well separated.
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