PEAKS AND VALLEYS—???
QUESTION: Can someone help me with a strategy called peaks and valleys?
Hi Kevin, There is no magical formula called “Peaks and Valleys.” Someone may have a strategy that they use to sell something.
Be careful. We call it Rolling stocks, and look for these movements all of the time
Go to a charting site and look for a one year chart of XOMA. Even though the stock is low priced,
you’ll see it traveling between $3.50 on the support side and $4.50 or so on the resistance side.
With those words in play, this movement is a stock moving between support on the low side, and resistance on the up side.
Many (indeed most) stocks move like this, some with an upward bias and some with a descending bias.
Most stocks rise and fall in fits and starts, and once you track a stock’s movements you can ascertain better the peaks and valleys.
If this doesn’t explain it well enough for you, then write more details so we have more to go on.