i think the terms low and high are relative, and as much if not more time relevant than price.
Take today for instance. There is a cycle turn for a high in time and price today into Monday. The high very well may have come earlier this afternoon, right about the time we initiated this discussion... the price is relative. The next high in this cycle could be Monday, and it could be a lower high...regardless, if your technical indicators are saying sell...it's time to sell anticipating a much lower low in the 7/9 time frame. Of course important technical areas of support and resistance are also to be used to confirm and negate cycle calls, and to indentify possible inversions.
Cycles, short and long, should be used within a more rubust technical trading system imo...they are very important, and useful, but you have to be able to flex.
There are hourly, daily, weekly, monthly and yearly cycles. Again, ideally you are looking for areas in time and price where the most variables line up to give the most definitive clues towards direction, all within a specific trading system, and a specific sector. |
