| MAR 1988
Curvilinear chart analysis by D.O. Christian Reiger
Curvilinear chart analysis by D.O. Christian Reiger Nothing in the universe moves in an unswerving line – least of all futures prices. Why then, should straight lines dominate our technical analysis of charts? In the following examples, you'll see how the curvilinear analysis of price evolution in several futures markets can answer some of the knotty questions that technical traders face. In particular, this analytical system provides an answer as to why price trends reverse where they do – sometimes out of nowhere and at unfathomable times. The system also gives insight into chart formations so as to better time trades. Additionally, it demonstrates relationships between past prices and patterns and future ones the essential premise of the validity of technical analysis. The apparatus used in the construction of these curves is the French curve of the drafting profession. You can make your own French curve with Figure 1, which also shows the four ways (a-d) the curve is positioned when plotting curves. For instance, on ensuing charts, the notation refers to curved line ""A"" drawn with the French curve in the (c) position. As a straight line must be drawn on at least two points to be valid, a curve must be drawn on a least three points to have predictive value. The first basic method for plotting curves is to draw them on a series of market highs or market lows in areas of price congestion such as accumulation patterns, distribution patterns and bull or bear trends. As with straight line analysis, curved ones along the tops of such formations would indicate resistance and those along the bottom, support.
by D.O. Christian Reiger
Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99
To continue reading, sign-up for trial access to Traders.com and the S&C Archive — 37,000 pages of trading ideas!
After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.
Not a subscriber to Technical Analysis of
STOCKS & COMMODITIES magazine?
Click
here to subscribe, or request
a trial subscription.
Log-in now to view articles from the S&C Archive.
Your Subscriber ID is located at the top of your magazine label, highlighted here in red.
Your last name can be found on the second line, highlighted here in blue.
*If you have a company name on the label, that can also be used. It will appear below your name on the label.
If you do not have a Subscriber ID on your label, you can find it on your statement or renewal form.
For help locating your Subscriber ID number, please call us at 1-800-832-4642 or send an email to Survey@Traders.com. If sending an email, please include your name and mailing address.