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Thomas Bulkowski’s successful investment activities allowed him to retire at age 36. He is an internationally known author and trader with 30+ years of stock market experience and widely regarded as a leading expert on chart patterns. He may be reached at

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Chart Patterns: After the Buy
Getting Started in Chart Patterns, Second Edition book.
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Bulkowski's Minor Highs and Minor Lows

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Busted
Patterns
Candles Chart
Patterns
Event
Patterns
Small Patterns
Market
Industrials (^DJI):
Transports (^DJT):
Utilities (^DJU):
Nasdaq (^IXIC):
S&P500 (^GSPC):
As of 04/27/2017
20,981 6.24 0.0%
9,194 26.25 0.3%
708 2.41 0.3%
6,049 23.71 0.4%
2,389 1.32 0.1%
YTD
6.2%
1.7%
7.3%
12.4%
6.7%
Tom's Targets    Overview: 04/17/2017
20,100 or 21,150 by 05/01/2017
8,500 or 9,500 by 05/01/2017
725 or 685 by 05/01/2017
6,150 or 5,900 by 05/15/2017
2,275 or 2,425 by 05/01/2017
Mutt Winners: None YTD

Written by and copyright © 2005-2017 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information.

See chapter 2, Minor Highs and Lows (page 13) of the book, Visual Guide to Chart PatternsVisual Guide to Chart Patterns book. (pictured on the left) for more information on minor highs and lows.

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Minor highs are peaks and minor lows are valleys on the price chart. Below are some tips for selecting minor highs and lows.

New research suggests that when a tall price bar (candle line) forms in an uptrend or downtrend, a reversal is likely (forming a minor high or low). For details, see Candles at peaks and valleys.

 

Minor Highs

An example of 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

An example of 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.

-- Thomas Bulkowski

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Written by and copyright © 2005-2017 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information. Bugs are sons-of-glitches.