Is there any way to objectively estimate the length of trades or different types of price runs? This analysis breaks down the Aussie dollar/U.S. dollar pair from Dec. 1, 2003 (72.84 closing price) through Nov. 30, 2007 (88.47 closing price), during which time the USD lost over 21 percent relative to the Australian dollar.

We’ll determine a range of price behaviors — the number of consecutive higher highs, lower highs, higher lows, lower lows, and combinations with higher and lower closes — as well as other price patterns.