Testing "Swing theory"

OK... I admit it... I don't have a complete theory rather it's more like a hunch. I think prices move in a swing like electricity does in a wire. But the reason we do not see a complete swing on charts is that we're seeing a distorted picture caused by induction of time in it. Therefore, conventional time charts are definitely not the way forward. For this theory to be successful, we need a chart which does not draw pips based on time rather, we need a chart which is drawn upon price movement only; Range charts are very useful in this regard but Renko and others are just as useful.

let's look at USD/CHF for an example. Now, why I've chosen USD/CHF is a story for some other time. Perhaps when I'll complete my theory. Meanwhile, let's look at the chart.


According to one theory: Technical studies essentially down to hunt for support in an uptrend) and for resistance (in a downtrend).

It's evident by just looking at the chart that a massive downtrend is imminent in a long run. I have simply installed an alarm at the support @.98343. As soon as the price closes below support, SELL this motherfucker and use the recent resistance @.98486 as a stop loss.

You have to be careful with buy-low-sell-high type of strategies since I'd consider it counter-trend but, I'm doing this very well currently on my demo with GBPCAD. However, I am using time which actually does provide an advantage that I previously didn't have when I wasn't taking into account a parameter as a function of time.

It'd be interesting to know why you chose USDCHF because from my observations, some pairs are better than others when it comes to considering time. For example out of GBP pairs, GBPCAD seems to be the most friendly.

From my experiments, buy-high-sell-low is definitely a safer way to go but obviously you'd have to figure out optimal exit(s), so it's more work since you'll need to use targets or something like that. You can't just let it run for as long as you want and close everything out when you're happy.

Nice thread.