How do you define a Swing High/Low?

Discussion in 'Strategy Building' started by lentus, Sep 18, 2019.

  1. comagnum

    comagnum

    A swing high or low prints a significant reversal point. Many of us swing trader call them reaction highs/lows (RH/RL). The distance between the current price and the prior RH or RL is used to filter out the best charts to take trades from.

    CAC 40 - marked with the most recent reaction highs & lows. The larger the % distance between the prior RH RL, the larger the potential reward-to-risk you typically have. Breakouts to new highs mean there is no resistance above.

    upload_2019-9-18_15-13-50.png
     
    Last edited: Sep 18, 2019
    #11     Sep 18, 2019
  2. lentus

    lentus

    Why aren't marked areas RL/RH?

    upload_2019-9-19_8-40-23.png
     
    #12     Sep 19, 2019
  3. tiddlywinks

    tiddlywinks

    From observation only, I see 2 possible answers. The poster may have different reasoning ...
    1) previous interim "low" was not breached, which suggests labels may have been placed in hindsight.
    2) number of bars did not meet criteria. Also remember what @speedo mentions, fractals (times frames) are nested.

    FWIW... Volume is your friend, but no where to be seen. :(
     
    #13     Sep 19, 2019
  4. lentus

    lentus

    yep yep yep. He did not objectively define what consistitutes a low/high which is the whole point of the thread. I just want wanted to make it obvious ;)
     
    #14     Sep 19, 2019
  5. comagnum

    comagnum

    You reading comprehension & grammar are piss poor. I clearly illustrated on the chart the most recent reaction highs & lows. You marked a few minor reactions within the larger reactions.

    You post is troll like. If you can't see the clear extreme price prints that mark significant price reversals than swing trading is not your thing!

    The chart is daily, this voids out your #2.

    The subject was not volume, I removed it to make the swings easier to see. Besides, this is a futures contract, volume has far less significance than it does with equities. Futures volume is unlimited, with equities there is a static number of shares that can be traded. I do use volume for trading U.S. index futures, only because I know the volume patterns are typically in sync with the cash/spot index ETFs.
     
    Last edited: Sep 19, 2019
    #15     Sep 19, 2019
    speedo likes this.
  6. tiddlywinks

    tiddlywinks

    Daily bars does not "void" anything... a count of daily bars for the purpose of determining minor/major, dominant/non-dominant/ zig-zag, or whatever term one wants to use for defining or recognizing "swing" highs/lows is no different than a bar count of 1 minute or 1000 tick bars.

    As for volume, there was no attempt to change topic to volume. You've now made it the topic... But this ain't my thread and I have no interest other than to say... unlimited issue or fixed number issue, volume is your friend!!! Caveat: completeness of volume data is of importance. For instance, BATS is not complete. And forex has no source at all for completeness. Incomplete volume is dubious for trading purposes.
     
    #16     Sep 19, 2019
  7. lentus

    lentus

    My comprehension is excellent while yours is suspect. And I don't care about my grammar performance on this forum.

    More importantly, though you're wrong. Anyone can go back and mark in hindsight "the most major" swing points. On the right edge it's different. I asked for an objective definition of a swing and you failed to provide that. I did not ask for what a 5 year can point out on a chart in hindsight. Get out of my thread please :)
     
    #17     Sep 20, 2019
  8. lentus

    lentus

    God, this is why I hate ET.
     
    #18     Sep 20, 2019
  9. heispark

    heispark

    How about learning Elliott Wave? Anyway, no one know until it develops...... You make only guess....
     
    #19     Sep 20, 2019
  10. speedo

    speedo

    Rocket Boy
     
    #20     Sep 20, 2019