Update 1 (from #10): Start using Linechart for Swh/Swl & reversal pattern.
Practice market prediction and potential setup based on multiple timeframe analysis.
Template:
[Timeframe]:[the most recent break of swh/swl (swing high/swing low) is Bull or Bear],[Current position is at Premium or Discount.]:[point]
for example: Weekly: Bull, at discount = +2
Conclustion:...
Action:...
Define a swing high/low: by 3 candles
- Swing high: Close of middle candle is higher vs Close of candle on the left & on the right.
- Swing low: Close of middle candle is lower vs Close of candle on the left & on the right.
*Note, Using Close price as a Swing point.
Defind break:
Close above Swh or below Swl
Define a trading range:
Break of Swh => New Bullish trading range
Break of Swl => New Bearish trading range
Break means Close above/below Swh/Swl.
Adjust the range with candle stick chart with High & Low price
For each trading range, divide into 2 halves: Premium & Discount area. Premium above & Discount below.
3 Stage in a Trading cycle (inside the trading range):
- Stage 1: The Initial impulse swing - As the movement/or the swing that breaks previous swh/swl.
Often, when Initial impulse swing is recognized as Stage 1, Market is already in Premium (as previous swh broken) or at Discount (as previous swl broken). Although, traders could trade with the Initial impulse swing direction, it's unfavorable to buy at Premium or short at Discount. The room for market to run is oftenly limited.
- Stage 2: Retracement - As market retrace to Discount (for a Bullish Initial impulse swing) or retrace to Premium (For a Bearish Ininial Impulse swing).
- Stage 3: The next Impulse swing: After Retracement, market continue to move with the direction of Initial impulse swing and this swing is ideal for a swing trader to join and ride with.
Stage 3 could become Stage 1 of the next cycle if it lead to the broken of current swh/swl.
Point count: Bull = +1, Bear = -1, Premium = -1, Discount = +1.
If total of 3 timeframe >0 => Long, <0 => Short
If total = 0, then the point of Higher timeframe should has more value vs lower timeframe’s.
Practice market prediction and potential setup based on multiple timeframe analysis.
Template:
[Timeframe]:[the most recent break of swh/swl (swing high/swing low) is Bull or Bear],[Current position is at Premium or Discount.]:[point]
for example: Weekly: Bull, at discount = +2
Conclustion:...
Action:...
Define a swing high/low: by 3 candles
- Swing high: Close of middle candle is higher vs Close of candle on the left & on the right.
- Swing low: Close of middle candle is lower vs Close of candle on the left & on the right.
*Note, Using Close price as a Swing point.
Defind break:
Close above Swh or below Swl
Define a trading range:
Break of Swh => New Bullish trading range
Break of Swl => New Bearish trading range
Break means Close above/below Swh/Swl.
Adjust the range with candle stick chart with High & Low price
For each trading range, divide into 2 halves: Premium & Discount area. Premium above & Discount below.
3 Stage in a Trading cycle (inside the trading range):
- Stage 1: The Initial impulse swing - As the movement/or the swing that breaks previous swh/swl.
Often, when Initial impulse swing is recognized as Stage 1, Market is already in Premium (as previous swh broken) or at Discount (as previous swl broken). Although, traders could trade with the Initial impulse swing direction, it's unfavorable to buy at Premium or short at Discount. The room for market to run is oftenly limited.
- Stage 2: Retracement - As market retrace to Discount (for a Bullish Initial impulse swing) or retrace to Premium (For a Bearish Ininial Impulse swing).
- Stage 3: The next Impulse swing: After Retracement, market continue to move with the direction of Initial impulse swing and this swing is ideal for a swing trader to join and ride with.
Stage 3 could become Stage 1 of the next cycle if it lead to the broken of current swh/swl.
Point count: Bull = +1, Bear = -1, Premium = -1, Discount = +1.
If total of 3 timeframe >0 => Long, <0 => Short
If total = 0, then the point of Higher timeframe should has more value vs lower timeframe’s.