A technical analysis rule that looks at the highest point or the lowest point at which the negative directional indicator (-DI) and positive directional indicator (+DI) cross for a particular financial instrument. The extreme point is the highest point for a particular trading day if +DI is above -DI, and is at the lowest point if -DI is above +DI. An investor would be signaled to buy if the price of a share of stock is above the extreme point.
Related information about extreme point rule:
- What is extreme point rule? definition and meaning
Definition of extreme point rule: A technical analysis rule that looks at the highest point or the lowest point at which the negative directional indicator (-DI) and ...
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Wilder qualifies these simple trading rules with the "extreme point rule. ... The extreme point rule requires that on the day that the +DI and -DI cross, you note the ...
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The Extreme Point Rule: The Extreme Point is either the high or the low of the bar at which the +DI and -DI lines cross. If it's a bullish crossing (+DI cross above ...
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