Background
In technical analysis, a peak refers to a high point or local maximum in the price of an asset. A valley, on the other hand, refers to a low point or local minimum in the price of an asset. When looking at a chart of the price of an asset, peaks and valleys can help traders identify potential turning points and potential changes in the overall trend of the asset.
For our sake, peaks and valleys are defined as the following:
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Peak:
- A peak must have one or more numbers in ascending order leading up to it.
- A peak must have one or more numbers in descending order after it.
- A peak can not occur at the start or end of price action.
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Valley
- A valley must have one or more numbers in descending order leading up to it.
- A valley must have ...