Swing highs and lows can be used by traders to identify possible areas of , which can then be used to determine optimal positions for stop-loss or profit target orders. If an indicator fails to create a new swing high while the price of the security does reach a new high, there is a divergence between price and indicator, which could be a signal that the trend is reversing.
Swing highs and swing lows are earlier market turning points. Hence, they are natural choices for projecting levels. Every swing point is a potential support or . However, for effective trading, focus on major swing highs and lows.
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study("Core Pivot",shorttitle="CPIVOT", overlay=true)
leftBars = input(6)
rightBars = input(6)
running_ph = running_ph
running_pl = running_pl
ph = pivothigh(leftBars, rightBars)
pl = pivotlow( leftBars, rightBars)
running_ph := ph
running_pl := pl
plot(running_ph, style=cross, linewidth=1, color= blue, offset=-rightBars)
plot(running_ph, style=cross, linewidth=1, color= blue, offset=0)
plot(running_pl, style=cross, linewidth=1, color= red, offset=-rightBars)
plot(running_pl, style=cross, linewidth=1, color= red, offset=0)
This would make it impossible to say buy the first candle after a support dot has been printed, unless your Swing Length value is set to 1. But you could buy a retest of that area if it happens after your X value.