Detailed Explanation of Central Features

In the field of technical analysis, the central concept is an important one. The following explains its characteristics in conjunction with two images:

Downward Central

The first image illustrates a downward central. When the first line is downward, there must be at least three consecutive lines of 'up-down-up'. In the process of forming these three lines in the image, the high points (3, 5) take the low point 5 as the central high point; the low points (2, 4) take the high point 2 as the central low point, and this central direction is downward. It is also important to note that the high and low points of the central are determined solely by the high and low points of the first three lines, even if the number of internal lines increases, the rule does not change. At the same time, there are structures similar to the central but not true centrals, referred to as quasi-centrals.

Upward Central

The second image presents an upward central. If the first line is upward, there must be at least three consecutive lines of 'down-up-up'. In the three-line trend in the image, the high points (2, 4) take the low point 2 as the central high point; the low points (3, 5) take the high point 5 as the central low point, and the central direction is upward. Similarly, its high and low points are determined by the first three lines, and structures that are not true centrals are referred to as quasi-centrals.