Once the trend line is broken

trend lineOnce the trend line is broken, I then look for an unsuccessful test of the recent high. This failure may take the form of prices reversing below the previous high or, in some instances, prices might actually penetrate the previous high by a modest amount and then break. In the case where prices penetrate the previous high, a pullback below that high would serve as confirmation of a failed test of the high. The third and final confirmation of a trend change would be the downside penetration of the most recent relative low. Victor Sperandeo

Igor Marinkovic

Electronic engineer, futures trader and property investor and total beginner in making good web sites