effective swing high and swing low

hi friends, can somebody explain to me how to identify an effective swing high and swing low positions in order to place a good buy or sell position.

Chart: EURJPY M1 on 9/3/14

Use a Double MA having a Period of 480 for the Fast Line and 1260 for the Slow Line. Paint the Fast Line green and the Slow Line red. Look throughout the history of that Double MA. Study each instance across a large segment of history when the distance between both lines reaches a maximum point before they begin to converge back towards each other and cross. Sum those maximum distance instances in Pips then divide that number by the number of times there was a maximum distance instances before the lines crossed.

When Fast is on top of Slow and price moves above the Green Line to a distance (in pips) away from the Green Line that is greater than or equal to 80% of the average historical maximum distance between Fast and Slow before they cross, look for price to plunge down to the Red Line. When you see that happen, you have your Swing Low.

Next, take a Fibonacci Fan tool and draw the leg representing the Swing High to Swing Low, which has its starting point where price rose to a distance above the Green Line that was at least 80% of the average historical maximum distance between the Fast and Slow lines. The Swing Low point will be the point at which price touches or approximates the Slow Red line. Set your Fibonacci Fan tool to display the 61.8% blade/line line. That 61.8% line is your target.

Note, this is a Time Based Target given the slope of the 61.8% Fibonacci blade/line. The more time elapses from the Swing Low point, the smaller the target becomes as the line slopes back towards the entry point. The entry point is the actual Swing Low, which is where price interacts with the Slow Red line. The "Optimal Target" is established by using the Fast Green line as the return to mean location for price. This assumes the price will continue "trending" (a concept I do not believe in - but many do). I

Note: If price does NOT continue "trending" such trades will not result in profits and you will begin to learn the importance of discovering Price Behavior in Multiple Time Frames (not just your Swing set-up Time Frame) and the importance of understanding price action inside the so-called "trend."

- This is one (1) way to figure out Swing Low locations.
- There are many other ways to figure out Swing locations.
- This is not a "Trading System."
- This is not the Grail.
- This is not absolute perfection.

To find the Swing High, simply invert the instructions above.

http://i61.tinypic.com/2rhp7om.jpg

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The broader trend in EURJPY using M5 and a wider visual scope. The broader trend had been UP and well above the 80% level on the M5 and nowhere near a touch on the M5 Red line yet. The importance of taking note of the location of price in ALL relevant Time Frames, can easily be seen in this chart.

http://i57.tinypic.com/faq3c0.jpg

I was never here. I am a ghost.

I was never here. I am a ghost.

To make things a bit clearer:
http://i60.tinypic.com/1rrsav.jpg

M1 method -vs- M5 method. Same set-up on both Time Frames.

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And, for even more clarity using EURJPY M15:
http://i60.tinypic.com/1z55e9x.jpg

Note: The M15 Double MA has just crossed to the upside. Yet, price is a long way from either Fast or Slow and both lines are very tight leaving no room at all for a decent target using this method. Essentially, on the M15 time frame, price is still Swinging Down. A point you would not know unless you were paying attention to ALL the relevant time frames.

This is merely illustrative to answer the OP's question.

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And, for even more clarity, we step back in time to observe the M30:
http://i57.tinypic.com/15nsvaw.jpg

Still want to pick Swing Highs and Swing Lows? Which High? Which Low?

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Time to get funky:

M5 EURJPY | Searching for a Swing Low using Hybrid B2i Structure and two Fibonacci Levels (Standard and Fan)
http://i59.tinypic.com/w5k3p.jpg

A little creativity never hurt anyone studying the markets. We transition from using basic "Swing Highs to Swing Lows," to using a little "harmony" in locating possible pivots in the market. Keep in mind this is the M5 bar. You have to pay attention to larger time frames as well using the same set-ups to determine what's really happening in the market.

This one suggests that the Hybrid B2i spanning from today's D1 Open to Today's D1 High and Today's D1 Low, sets the stage for the final B2i Maximum Extension Point at somewhere between the Standard Fibonacci 61.8 and the Fan Fibonacci 61.8 of the same B2i range. A little funky, but I like it. It gets the brain outside of conventional thinking and that is always a good thing. Let's see how this approach differs from the first.

Still want to pick Swing Highs and Swing Lows using market behavior that everyone else can see? Just food for thought.

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Let's go ahead and overlay the actual Hybrid B2i from today's Open without the yesterday's low to today's high Fibonacci Fan Maximum Extension (O:L) of 61.8, just for comparison purposes.

http://i57.tinypic.com/2jc8uag.jpg

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You should have at least one or two good ideas now about how to find what you are looking for. The point here was to show you that there are a number of different ways to find what you were looking for and that in order to find it, you really should be looking at all relevant time frames based on your trading event horizon (when you expect to take profit).

I hope this helps to kick-start your thinking. This is not meant to be a trading model. It is a exercise in finding creative ways to locate pivots in the market - which is what you said you wanted.

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interesting .. stuff............................................

Paying homage to Fan 61.8% of the X:A range after making an internal run at the Standard Fall Line of the previous D1 B2i. Let's see just how much respect the market gives to this Blade in relationship to the previous D1 B2i and the Projected B2i using the Standard 61.8% off the same X:A range. In play now, is the previous D1 B2i Fall Line (projected Long bias) along with a projected the Projected Extreme Point (O:L) of the Projected D2 B2i.

This combines the now completed D1 B2i with the Projected D2 B2i, both using the same initial Open price as the starting point and the much larger D3 Harmonic pattern initiating at Point X.



http://i57.tinypic.com/f9ppnn.jpg

I was never here. I am a ghost.

I was never here. I am a ghost.[/quote]

iDoubleStoch,

I really love your posts because they are unconventional and I appreciate looking at things a bit differently. So please keep on posting..

HOWEVER, the idea of painting a 61.8 degree angle of incline line on a time series is totally flawed! It becomes completely subjective.
What happens if I zoom in on a chart? The angles no longer work...

Tanks iDoubletouch, your postings are splendid. keep it up.

How long will it take one to become a professional forex trader.

Also, can some body tell me if he knows about fleetforex.