Swing low(SL)

The market tried to move down. Then, it stopped and the bullish trend resumed. The
market broke all resistance (swing high) and made a new trend high. In other words, the
market failed terribly in its attempt to move down. The lowest point it pushed to is called
swing low

Tip: valid pivot makes sense only within the trending price action. To find a valid low, you
need to know the start point of the trend and the last extreme trend high. Then what about
point B? Point B is called a LOW not a swing low
Swing low
Every major market has some pullback that is shallow and some last for one swing. The
point where pullback goes deeper and lasts for more than one swing, forming a LOW.
Eventually, this deeper pullback terminated and the trend resumed. A low becomes a
swing low once the price breaks out above the last extreme price high for the resumption
of the bullish trend. Let me explain to you
HOW TO KNOW WHEN LOW BECOMES SWING LOW
When the price cleared the above swing high level. To clear a price level, the market must
form a price bar that is completely above the price level. This means if a bar low is higher
than a price level, the market has cleared above the price level.

UNDERSTANDING MARKET SWINGS in Advanced Candlestick

Analysis
We have understood how to find out swing high and swing low
Let’s understand STRENGTH AND WEAKNESS OR TREND THROUGH an ANALYSIS
OF swing
 Momentum
 Thrust and pullback
 Volume
What is Momentum?
The rate at which price move with respect to time
We are simply observing price action in order to compare the current speed and
acceleration of price movement with historical speed and acceleration. Momentum is
visible on a chart by observing the slope (angle) of price movement
The same concept applies to price action on charts. Changes in momentum are observed
through changes in the slope (angle) of the price action
Analysis of momentum is not about measuring any absolute value of momentum,
but making a comparison of current price action momentum with prior price action
momentum.
We can compare through
1. Candle
2. Swing
Momentum through candle
Compare the momentum of the current candle with the momentum of the previous candle
BAR COUNTING
1. Counting the number of bars in a half cycle and comparing one-half cycle
to another (previous half cycle)
2. Comparing each swing(relative strength of move)
3. How much time to get up or how much time to get down
Momentum through swing
1. Compare the momentum of the current price swing with the momentum of
the previous price swing in the same direction.
2. Compare the momentum of the current price swing with the momentum of
the previous price swing in the opposite direction.
 3. Is the current price accelerating or decelerating? What does that mean?
1) Compare the momentum of the current price swing with the momentum of the previous
price swing in the same direction?

Now let’s remove the downswing and study what it is showing Is the price faster or
slower than before?

Compare the slope of UP-swings (a), (c) (e) and (g). Note the decreased speed on each
of these legs, indicating a reduction in bullish momentum. Weakness is appearing on the
bullish side.
Clearly shows upward momentum decreasing
Now putting the same chart with only downward momentum
Compare the slope of upswings (B) (D)(F) and (H). Note the increasing speed on each of
these legs, indicating an increase in bearish momentum. bearish price swings are showing
signs of strength.
BY COMPARING THE SWING
IT indicates an increase in bearish momentum. bearish price swings are showing signs of
strength. The price movement is more likely to continue in the direction of strength and
against the direction of weakness.

2) Compare the momentum of the current price swing with the momentum of the previous
price swing in the opposite direction?

That is, comparing the current bullish swing with the previous bearish swing; or comparing
the current bearish swing with the previous bullish swing. Note the slope of (a) is quite
steep compared with the slope of (b). The latest upswing (b) has shown weakness
compared with the previous downswing (a). Strength is still in the bearish direction.
Bullish upswing (d) shows an increase in speed compared with the last downswing (c).
While the strength is now on the bullish side. The shallow angle of downward momentum
compared with the steep rise of upward momentum indicate Strength is now clearly on
the bullish side.
The price movement is expected in the direction of strength and against the direction of
weakness.
3) Is the current price accelerating or decelerating? What does that mean?
The deceleration in this example is evidence of bullish momentum gradually weakening
as bearish pressure overcomes any bullish pressure.

end chapter
any help mail snehashisban007@gmail.com
What is Intraday Breakout Trading Strategy?
Break out means moving below any support or above any resistance. Price breakout from
1. First support and resistance is a break of previous candle high or low
2. Last swing high or low (shorter-term support and resistance)
3. Major support and resistance
4. Trend line or moving average

Benefits of Intraday Breakout Trading Strategy:

There are several benefits to trading breakouts. For example
1. Momentum is with you – Trading breakouts allow you to enter your trade with
momentum at your back
2. Catch big trends – If you were to trade pullbacks, sometimes it may never come. But
with breakouts, you never have to worry about missing another move in the markets
The demerit of Breakout Trading Strategy:
False breakout or trap
Benefits of Intraday Breakout Trading Strategy:
There are several benefits to trading breakouts. For example
1. Momentum is with you – Trading breakouts allow you to enter your trade with
momentum at your back
2. Catch big trends – If you were to trade pullbacks, sometimes it may never come. But
with breakouts, you never have to worry about missing another move in the markets
The demerit of Breakout Trading Strategy:
False breakout or trap
When should we avoid trading breakouts?
When should we avoid trading breakouts?
1. Don’t trade breakouts when the market is far from Support/Resistance (S/R)
and are there obstacles overhead or underfoot that could possibly obstruct
an advance or decline
2. Don’t trade breakouts without TIGHT TRADING RANGE (consolidation)
before the breakout
3. Don’t trade breakout when the break is set against the dominant pressure
Don’t trade breakouts when the market is far from Support or
Resistance (S/R) Why?
Because you don’t have a logical level to place your stop loss. Even if you do, it usually
results in a poor risk-to-reward profile Based on the stop loss placement we can divide the
break out into three types
False Breaks, Tease Breaks, and Proper Breaks
Whether to take a position or not on a break is always a function of how well the technical
credentials of the chart back up the prospects for follow-through.

The difference in consolidation prior to a breakout not only affects the likelihood of follow-
through but the level of protection as well. An excellent way to play a break is shown in
Situation 3. Now we can truly see the virtues of proper consolidation up. The breakout
may still fail soon after, but technically seen, this is the more favorable scenario
Don’t trade breakouts without consolidation

Why is this so?

Traders in profit will exit their positions at the nearest swing high (to protect their
profits). And traders looking to short will do so at the swing high. So here’s what
happens…
You get a double dose of selling pressure. From traders exiting their long trades (by
selling), and traders looking to short the markets. With so much selling pressure in the
same area, chances are, the breakout would fail if breakout happens without
consolidation.
DON’T TRADE AGAINST THE Higher Time Frame Support and
Resistance
How to find high-probability breakout trades
Based on my experience, these are the best times to trade breakout:
1. When the market is trending strongly
2. When there’s no Support/Resistance nearby
3. When the market is forming consolidation in Support and Resistance area
4. When there are higher lows in Resistance or lower highs in Support
Let me explain to you the above four points in detail
1. When the market is trending strongly
If the market is trending strongly, you’re unlikely to catch the trend on a pullback. So, what
can you do? Well… you can trade the breakout, right?

You can get long when the price trades above the swing high, and place your stops below
the last swing low
2. When there’s no Support/Resistance nearby
Think about this. If you’re short of the market, where would buyers come in? If you’re long
the market, where would sellers come in? Support and Resistance, right?
3. When the market is forming consolidation at the Support and
Resistance area
Why do you want to trade breakouts with consolidation?
Here’s why: A consolidation would attract stops in the market as traders place their stop-
loss beyond the highs/lows of the consolidation. It could be to protect their existing
positions or to trade the breakout in either direction. So, when the market breaks out of
consolidation, you get a double dose of pressure. And it’s caused by traders looking to
protect their positions and traders looking to trade the breakout. An example:
4. When there are higher lows in Resistance or lower highs in Support
Higher lows into Resistance is a sign of strength by the buyers and there’s a good chance
the market will break out higher. Why? Because if there were strong selling pressure at
resistance, the price should have fallen quickly. The fact it didn’t tell you that buyers are
willing to buy at higher prices and thus forming higher lows into Resistance. Visually, it
looks like an ascending triangle. Here’s an example:
And when you get lower highs into Support, it’s a sign of strength by the
sellers. Because if there were strong buying pressure at Support, the price should have
risen quickly. The fact it didn’t tell you that sellers are willing to sell at lower prices and
thus forming lower highs. Visually, it looks like a descending triangle. An example:

Breakout bars for upside

1. The bar that breaks structure (resistance line)
2. Volume should dramatically increase
3. If the follow-through bar is large, the odds of the trend continuing are greater
4. The first pullback occurs after 3 or more bars of a breakout with low volume
and lower tail
Breakout and breakout bar
The bar has a full trend body and small tails or no tails, the larger the body, the more likely
breakout will succeed. A wide spread up bar closing on the highs pushing up and through
an old top to the left. It is an effort to go up as it is showing demand. After this event the
market usually rests or starts to react, you are now looking for indications of strength to
confirm the strength
Breakout and volume
If you observe a wide spread up, on high volume, punching through the top of a resistance
(supply line), and the next day is level or even higher, then you would now be expecting
higher prices. Any low volume down-day (potential test) will confirm this view

BREAK OUT bar NEEDS FOLLOWTHROUGH

Traders like to see a confirmation after the breakout. One more trend bar after breakout
bar. A bull break followed by a bull break is a sign of follow-through and thus an indication
of bullish enthusiasm, for as long as it lasts. Should we see the market respond to a bull
break with a bearish bar and this bar then gets broken at the bottom by another that gives
us valuable information also: technically seen, we are dealing with a false break. It shows
false as the bull break failed to follow through and was followed by a bear break-in turn
.
BREAKOUT AND PULLBACK
Any low volume pullback shows a successful breakout

How do I enter breakout trades?

Well, there are usually 3 ways you can trade a breakout.
You wait for a candle to close:
It’s easier to execute the trade psychologically as the candle has closed in your favor

You may get a poorer risk-to-reward (as the market has already moved in your favor)

You trade breakout using a stop order:

It’s harder to execute the trade psychologically because there are no signs of
“confirmation”
You usually get a better risk-to-reward (as you’re entering near the breakout level)
You trade test of the breakout
After the breakout, any low volume test is a high probability entry with low risk and high
reward.
I alaws try to my best knowledge.

Any help mail to me , my id :- snehashisban007@gmail.com.