Per the suggestion of Db to not exclude the overnight action, I've reviewed it using 15 minute bars (rather than 1 minute bars) as the behavior is still visible. So yesterday's trading ended (NY hours) inside a rather narrow range of about 6 points. A - New value was sought out, but it didn't hold - back into the range. B - Let's take a trip to the southern end and see if we can pick up some steam here. The price area held for more time, but the range is where all the trades were happening. C - Let's take another trip back to the upper end. Nope - denied again. As with B, another try occurred to the south. D - Let's try the upper end again. A little more traction this time and a HH, but it was back into the range, but on the upper end of the range. E - Another HH, but price quickly moved back into the range and moreso than after D. F - An attempt to exceed E, but buyers seem lonely out there on there own. What a surprise that after that, price makes a more significant move south. G - Price heads south, exits the range, but can't make it down to the 4150 area. H - Back into the range to the top. I - Another trip down to the bottom. J - A major shift in who seems to be in charge. Demand moved swiftly and exceeded the 50% level of the down move yesterday. The next question is - will it hold? K - Retreat of price after the definitive move up, but not back into the range. Price hung out in an equilibrium area - not retreating, but advancing slowly. L - Price has exceeded the previous high. It doesn't stay there long though. M - Though price retreats, it doesn't breach the swing low at K. N - Another higher high. It's safe to say that price was telegraphing it's intentions after a series of higher highs and higher lows. With the next resistance area around 4230, that was the logical next step.
The following bar is a pause, but two bars after it illustrates more of a 'failure' to retain that price level. Price didn't advance further.
A "failure" to hold a particular price level is what creates swing points. Of what importance is the fact that price held above the previous swing high for an hour? And try to get away from thinking in terms of "bars".
The importance of holding above the previous swing point is that, the general nature of the trend is still up. In this example, I was using the notion of bars just to explain the area.
Right around a previous swing point (4185), but below the 50% area. Price couldn't hold past the 50% area.