Module 4 · Lesson 4.5
Extrema & the Shape of a Curve
Find peaks and valleys by locating where the slope hits zero, then read the sign of the derivative on either side to classify each critical point.
Intuition
Walk along a hilly path. At a peak the ground levels out for an instant before sloping down; at a valley it levels out before sloping up. Those level spots are the places where the derivative is zero. They are the candidates for local maximum and minimum values.
A stock-price chart shows the same geometry: a local high is a moment when the instantaneous rate of change crosses from positive to negative. Traders watch those turning points; calculus locates them systematically.
Core concept
Critical points occur where $f'(x)=0$ or $f'$ is undefined. The first-derivative test examines the sign of $f'$ immediately to the left and right of each critical point: positive-to-negative means a local max, negative-to-positive a local min, same sign on both sides means neither.
Interactive Lab
Move the probe along the curve. Watch the tangent slope change sign at the critical points and read the local-max / local-min classification.
Green marker is the local maximum; amber is the local minimum. The tangent is horizontal exactly at those points, and the sign change of $f'$ confirms the type of extremum.
Key Idea
A number $c$ in the domain is a critical point when $f'(c)=0$ or $f'(c)$ does not exist. If $f'$ changes from positive to negative at $c$, then $f(c)$ is a local maximum; if it changes from negative to positive, $f(c)$ is a local minimum. No sign change means the critical point is neither a peak nor a valley (a horizontal inflection or a flat shoulder).
Think Further
- Can a function have a horizontal tangent yet neither a local max nor a local min? Give a simple example.
- On a stock chart, why might a local maximum be more useful to a short-term trader than the global maximum over a whole year?
- If $f'$ is zero on an entire interval, what does the graph look like there, and are those points still called critical points?