Disliked{quote} There are two (maybe) types of Swings that I understand, others can know more on this than me. Swing - Targets The main ones (for me) are the Intraday and prior, HL & LH. Essentially, these for me are usually the (George) Targets The HL form on the way up with price (as mini-swing points) and the LH form on the way down with price (as mini-swing points). These then (for me, I mean) become the Targets for the next price move back in the opposite direction now & therefore back into the prior swings. And Targets for price to arrive AT, NOT...Ignored
let's forget about charts for a sec, and focus on Dow rule for everyone to understand it.
when trend starts, it's easy to spot HHHL-LHLL by eye, correct ?
and the rule says: A trend assumed to be continuous until DEFINITE signal of it's reversal.
and that's when you see the usual patterns of H&S(or inverted), double tops/bottoms or more, and most important is LOW RANGE.
just imagine you have HH, there will be HL before it, and you are waiting for another HL(pullback) after the HH to confirm the trend is still going.
but, if you have LL after the HH that break the HL before it, then you should prepare for the patterns mentioned above, you DON'T close trades, for a change of trend you should have LH first(or the patterns), and that will be near last HH within few pips(in swings 50+/- is few pips), that is the zone you TP.
charts:
in H4, time-based zigzag(setting 12=2days) will be enough, supported with any OB/OS & Div indicators to compare highs/lows for waves.
in lower TF(M30), BB(48) can give you direction and range of day and the breakout supported with ZZ and OB/OS & Div, should be a start of a trend. same Dow rules and patterns apply.
example of a swing I took, the breakout is the start of trend, end of week and top weekly range Res was the reason for TP(got scared from the heavy positions), trend was still strong. daytraded the rest.
Dow rule apply to all TF's, it's just the higher TF has bigger waves(reading). so it can fit any trading style.
cheers,
"the public is not yet ready for it" W.D. GANN
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