The Trader 

Spikes, false breaks and non-confirmation

The Trader

Charles Dow, editor of the Wall Street Journal in the 1880s and co-founder of Dow Jones and Company, dreamt up the indices of that name which are still used extensively for US stocks.  A firm believer in technical analysis, he collated the articles he wrote for the paper into one of the first textbooks on the subject. Core to his thinking was that price action in one index must back up that in another one. Non-confirmation is when they are pointing in opposite or diverging directions.

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