Extreme points
What are points of extremum?
Extreme points - in mathematics, this concept defines the maximum or minimum value of a function in a particular set. The maximum point is the point at which the maximum value is reached, the minimum point, respectively, the minimum value.
Extremum points on the stock exchange
The mathematical principle for the extremum points is retained in trading. The maximum extremum is the highest price level on the asset chart, at which a break in the existing uptrend occurred. The minimum point is the lowest level reached by the price before the reversal or correction of the downtrend.
Why do we need points of extremum on ?
Extremum points on and stock exchanges occur at times of strong oversold or overbought conditions. They form strong support and resistance levels that can repeatedly reverse trends that reach them.
In trading on the currency market, the extremum points are used to build channels on price charts, and as reference points for setting stop-loss and take-profit orders.