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Time Frame
Data size
Measured Swings
We can further clarify our swings by their size. Measuring the size of the swings is a valuable tool.
In the chart below it is clear that overall price is trending down. Within this downtrend are 3 swings. A-B, C-D and E-F. These are the retracement or reactive legs before price impulsed down again. So after A-B price impulsed to C. After C-D price impulsed to E. And after E-F price impulsed to G.
By measuring the reactive legs we establish reference points. These can be used as gauges or limits. Once price reaches the limit of a reactive swing based on a previous reactive swing we can start to think about whether or not price is going to continue the same and turn for the next impulse or if it is not.
Notice G-H. This swing clearly violated previous reactive swing sizes. Does this mean price is going to start swinging to the upside? G-H satisfies the rule: a new high confirms a low and thus is the potential beginning of new uptrend.
This is beautiful to me. It is an absolutely objective framework for following price and price swings and is the beginning of not only understanding price action but of formulating a potential trading strategy. If the wheels aren't turning then please go back and review or please ask questions.
DislikedPlease see my drawing with line .Base on chart will be long for USDJPY with HL .{image}Ignored
DislikedHi Abe, With your chart I can see with LTF we should go with large swing or we can go HTF with large swing too.With vertical line we can see trend . I have not recognize large swing yet .Let me post the other chart later to find out swing .Thanks MunchieIgnored
DislikedHi Abe, Please see the attachment. I drawn UJ and base on my drawn UJ up trend because high low last one on right. Please be advise .Thanks{image}Ignored