question on TA

[mjstyle]

As you can see below is a chart for XRM. my question how many days do you have to know before plotting another point like in this TA book i read if the next peak and trough is greater than the previous peak and trough that means a uptrend but what does it mean if the next peak is greater but the trough is not. Also how many days do we have to observe to draw out a up/down trend line. Thanks

http://finance.yahoo.com/q/bc?s=XRM&t=1y&l=on&z=m&q=l&c=

[Tommy86]

mj, you are looking at an unuseful chart. no real TA possible with it!

use this: http://stockcharts.com/h-sc/ui?s=XRM&p=D&yr=0&mn=3&dy=0&id=p18357245594

to your question: you can draw trendlines whenever you want! no minimum amount of days. just use your common sense, if a trend lasts for many days you know its a strong trend. but if you just draw a trend for 2 days you may imagine it has not much to say.