Swing terminology
A weekly low? You mean lower than 4800, this week? Or do you mean a local weekly low below 6460? A swing bottom? That's a new one. And a low doesn't 'result in a rally', it is defined by the subsequent rally.
swing bottoms and swing tops. As more and more into the pool of trading commentary, the definition is starting to get watered down. For the 30 years I've been trading, and going back to the days of W. D. Gann (early 20th century), the terms 'swing top and bottom' refer to the following:
Swing Bottom: When you have a price bar that makes a lower-low than the previous price bar low, and then prices rise to make a higher-high while that low is still holding, that low becomes a 'confirmed' swing bottom.
Swing Top: When you have a price bar that makes a higher-high than the previous price bar high, and then prices decline to make a lower-low while that high is still holding, that high becomes a 'confirmed' swing top.
W. D. Gann often wrote about 'swings' and applied this definition for which I subscribe. Others also referred to this pattern as swings, such as Michael Jenkins on Chart Reading when defining trends.
So when someone says that they are expecting a 'swing bottom' for a particular time-frame, you would use the price bar chart of that time-frame to look for that particular pattern.
My referring to last week as a high probability 'weekly' swing bottom would suggest that you would look at last week's price bar on a weekly chart to form that pattern. Last week made a lower-low (that's the first requirement) compared to the previous weekly low, and this week now has formed a higher-high than last week's high to confirm that low as a 'swing bottom'.
Based on W. D. Gann's "Trend Line Indicator" method for 1-bar swings, the line would now be moved up from last week's low to this week's current high, thus forming a 'swing' of the line itself.
Some have mistakenly referred to swings as the actual 'waves' themselves, such as the recent daily rally in BP since the bottom low of 3/24, referring to the rally itself as a 'swing'. It's not a swing! The rally is a WAVE. Waves can be impulse or corrective. The 'swing' on the daily chat is the 3/24 price bar itself...a DAILY swing bottom.
So in BP, we have a 3/24 DAILY swing bottom, and on the weekly chart a week ending 3/28 WEEKLY swing bottom. Same exact pattern. New lower-low that holds long enough for prices in following price bar(s) to make higher highs.
Cheers!
