DislikedThere you go Tbyen, not an ABCD swing high but an ABCD swing low hit to the pip. I posted an AB=CD to go long. It almost hit the target but turned south. I was stopped out for +2 pips. I went short and managed to pick up a few pips (but not all) on the way to the ABCD low target. Noted what you said as well Des, thank you. {image}Ignored
It looks to me that you have your pink box drawn to the absolute price high of A but you don't show the AC or AB lines so which point is A?
A should be the close of the pivot prior to the bear div.
So we get...
A = 1.374
-B = 1.370
= 0.004
C = 1.370
+ 0.004
= 1.374. D hit this number exactly 1.374.
See if your numbers match else Houston we have a problem.
Here is my 1 hour drawn with the box method.
It is often the case once the target is reached price will swing back 100% in the opposite direction which it did on this occasion reaching D2 in divergence.
When all said and done what we are looking at are what I call the 'swings of equilibrium'. Where AB is always the target distance if C is a contested point tp swing from.
We have the buyers at B winning and the sellers at A also winning, something has to give. In this case price reaches D but this is not enough to take out the stops at A. Then B takes their profit and price swings 100% in the opposite direction to D2 where A takes their profit causing price to rise again.
Fascinating stuff is this study of swings and should keep you all studying for many years before it becomes clear as mud.
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