This preview shows page 1. Sign up to view the full content.
Unformatted text preview: that the momentum has peaked at point B and is declining while the prices are still making higher highs as shown by the trendline connecting points a, b and c. The momentum is signalling a possible reversal which can be seen by the reversal in the trend from A to B and B to C. On 10/3/00 the price had just fallen below the trendline for higher lows, marking the possible end of the current trend. If the price does not move well above the trend of higher lows today, the reversal signal of the momentum is confirmed by the price. Figure 1. Boeing Company [BA] shows signs of a reversal. Higher highs and higher lows are currently in an uptrend. However, the momentum indicator is showing signs that uptrend is ending....
View Full Document
- Spring '10