Peak and Trough Chart

Charting peaks and troughs can really help you understand outliers and when a good time to buy or sell might be. As taught in other lessons if you paired web scraping or live stock prices with this you can lin live time learn when stocks hit bottoms and tops.

After you have created your X, Y, and your spread you need to determine the timeframe you want to analyze. It is important that you don’t use too many days or you may be over analyzing. This is a huge mistake people often make thinking if they take it all into account they can’t go wrong. It’s too hard to understand a pattern with too much information.