troughs

Contrary to the belief people have that determining the stock’s trend is easy, in real time this is very difficulty and you can not have a probability of 100 per cent, otherwise every one of us would be a successful trader. Strength or uptrend is identified by a series of crests where each crest exceeds the highest point of the previous crest. The decline, between crests, ends above the lowest point of the previous decline. Weakness or downtrend is identified by a series of troughs where each trough goes lower than the lowest point of the previous trough. The incline, between troughs, ends below the highest point of the previous incline.

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Wave interference is the phenomenon which occurs when two waves meet while traveling along the same medium. If two crests meet up with one another the resultant net effect is of enhanced crest. This interference is known as constructive interference. If a crest and a trough meet up with one another the two pulses will try to cancel each other's effect and the resultant net effect will tend toward zero or the equilibrium position. This interference is known as destructive interference. Ever wondered why carpenters saw the wood in the directions of the grains rather than up against the grains? - The bundles are sliced clearly leaving a smooth surface with minimum defects.

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