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.

Copyright©2009 by InvestorWords.com. ALL RIGHTS RESERVED.

Reproduction of all or part of this glossary and/or this page, in any format, without written consent is prohibited. If you have questions about this dictionary please feel free to contact us feedback\@\investorguide.com