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Chart-reading basics · 3 minutes

High enough.
But confirmed?

A tall point can catch your eye before the chart gives you enough evidence to confirm it. In this exercise, check the points on both sides before making your call.

The rule for this exercise

Call the middle point H a confirmed high only when it is strictly higher than both neighbours, G and I, and all three values, G, H and I, are final.

This is a simplified three-point rule. Other methods use different confirmation windows. Use the rule stated in the exercise.

Three finished points: G at 108, H at 116, I at 116The line rises from G to H, then stays level to I. H is equal to I, so it fails the strictly higher rule.108116116GHI
All three values are final. Does H qualify?
Show the answer

No. H is higher than G, but equal to I. Equal does not meet the strictly higher rule. With all values final, this candidate is ruled out rather than waiting for the same values to change.

Three outcomes

  1. Confirm: all three values are final and H is strictly higher than both neighbours.
  2. Wait: one or more values are unfinished, so the evidence is incomplete. In the free demo, this is the right-side value.
  3. Rule out: all values are final, but a neighbour is equal to or above H.

Try a different chart

The useful habit is checking the evidence, not memorising where H appears. Try two different examples and see the reason for each answer.

Make your call →

Does a confirmed high predict a fall?

The rule identifies a local shape. It does not determine what price will do next. A trade also needs a separate entry, exit and risk plan.