Multiple Time Frame Anaylisis! Swing points

[nevets24]

Does anyone have good reading material on MTFA??? I was looking on google and they have very basic information. Any good author who write about this subject??? Let me know thanx...

Also I am having problems identifying swing points does anyone have clear rules on identifying these swing points. Everyone who I asked can show me after they have happened but no one can explain to me the signs of a new swing high or low is getting ready to form.

 

[Chartsy]

errr..... highs happen when price is overbought and takes a rest by dipping back, once the dip is oversold it heads back up again, forming a new low...so on.

multiple time frames are the key for daytrading i think, the most important thing is realising the context; what's happening higher up? as in, your 5 minute chart is stalling, because your 60 min chart is in a range and we just hit the bottom. Then the hourly trends down, but really this is all just a pullback in a larger trend off dailies. I found that i may as well just trade the daily trends and use lower timeframes for confirmation rather than the other way round.

 

[Blaiserboy]

Does anyone have good reading material on MTFA??? I was looking on google and they have very basic information. Any good author who write about this subject??? Let me know thanx...

Also I am having problems identifying swing points does anyone have clear rules on identifying these swing points. Everyone who I asked can show me after they have happened but no one can explain to me the signs of a new swing high or low is getting ready to form.

You might consider that catching the top or bottom is quite risky compared to trading pull backs in an existing trend.....

 

[nevets24]

You might consider that catching the top or bottom is quite risky compared to trading pull backs in an existing trend.....

DOnt understand that statement. I am not a bottom or top picker..... Just want to know how to identify swing points

 

[Splitlink]

If you are not interested in top picking you will find the swing high with hindsight. The next one will be a low and then a run up. This will make a pullback. If this does not make a new high and breaks below the previous low, you are in a (hopefully, nothing is certain!) new downtrend.

There are lots of definitions of a swing high, depending on your pain threshold. Backtrack on various timeframes and find what you thnk is a good pattern that works more often than not but be constant---no changing the number of bars as you go along! The main problem that I have to contend with daily, even hourly bar tradng, in this way is the increasing and unacceptable stop loss distance.

Barjon and Tom are enthusiasts of this system. You'll find them on Swinging the Footsie 2010.

Split