Extreme Point Rule
Definition
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.
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