well, i identify swing in a pretty discretionary way. I guess my eye has come to take into account volatility as well as price action when telling me when there is a good swing or a confusing one.
but for me it's simple, a bullish swing is price action between where supply depleted (the low) and where demand was depleted and supply took over again (the high). i don't take it too mechanically.
when i trade say long, i am looking for a good bullish swing that would show me that demand (bulls) is getting stronger while previous supply failed (basically a higher-high, higher-low pattern) but with increased strength from demand cycle to demand cycle. that's how i know the market is optimistic and not just tested the high, went above it (by manipulation) establishing a slightly higher high and then coming back.
the swing that i buy the retracement after should be larger than the preceding swing. that's how i know demand is good and people are buying out of conviction.
furthermore, the pullback has to be swift because the more it hangs there at the top, and not retracing, is a sign the people are starting to see the swing high more as a top than a temporary pause.
there is a message before the trade in what concerns supply and demand and then you gotta pay attention to the message after the trade, again by looking at supply and demand. keeping objective, yet, not mechanical is the most pleasant, comfortable and humanly way possbile.
the next thing you know, you start trading out of pure intuition (after some years) and what do you know... your trades are generally good.
and while you're not looking at a speedometer, just by looking at how fast the landscape moves you know if you are breaking the law or not. furthermore, you have time to look at other cars, people crossing the street, policemen etc (a metaphor for taking care of money management and trade management and overall account management and not worrying too much about technicals).
we have ONE mind that has to take care of everything.... y'know!
but for me it's simple, a bullish swing is price action between where supply depleted (the low) and where demand was depleted and supply took over again (the high). i don't take it too mechanically.
when i trade say long, i am looking for a good bullish swing that would show me that demand (bulls) is getting stronger while previous supply failed (basically a higher-high, higher-low pattern) but with increased strength from demand cycle to demand cycle. that's how i know the market is optimistic and not just tested the high, went above it (by manipulation) establishing a slightly higher high and then coming back.
the swing that i buy the retracement after should be larger than the preceding swing. that's how i know demand is good and people are buying out of conviction.
furthermore, the pullback has to be swift because the more it hangs there at the top, and not retracing, is a sign the people are starting to see the swing high more as a top than a temporary pause.
there is a message before the trade in what concerns supply and demand and then you gotta pay attention to the message after the trade, again by looking at supply and demand. keeping objective, yet, not mechanical is the most pleasant, comfortable and humanly way possbile.
the next thing you know, you start trading out of pure intuition (after some years) and what do you know... your trades are generally good.
and while you're not looking at a speedometer, just by looking at how fast the landscape moves you know if you are breaking the law or not. furthermore, you have time to look at other cars, people crossing the street, policemen etc (a metaphor for taking care of money management and trade management and overall account management and not worrying too much about technicals).
we have ONE mind that has to take care of everything.... y'know!
