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I welcome any feedback, comments and suggestions for improvement.
Please discuss the PriceActionSwing (PAS) indicator in this thread. Any comments or suggestions are more than welcome here. If you have a more private issue send me a PM or better an …
The main challenge for a swing indicator is to select the proper swing highs and lows. Once you have the swing highs and lows, it is easy to display the swing size in ticks. There are several methods for determining swing highs and lows.
1. Minimum Deviation (Vertical Method)
You simply set a minimum deviation from the high point or low point. Any move in the opposite direction must exceed that deviation before a new swing leg is added.
The minimum deviation may be set in
- multiples of ATR (average true range, indicator can be used with same settings across instruments, bar types and timeframes)
- multiples of AR (average range, indicator can be used with same settings across instruments, bar types and timeframes)
- points
- ticks
- as a percentage of price
2. Bar Count (Horizontal Method)
Here you set a number for the swing strength. For example, if you set the swing strength to 5, a new preliminary swing high should be higher than the highest high of the 5 preceding bars. A new preliminary swing low should be lower than the lowest low of the 5 preceding bars.
3. Combination of Minimum Deviation and Bar Count
A new swing leg in the opposite direction is only added, when both the conditions (1) and (2) have come true.
4. Building the Swing Trend from the Highest High / Lowest Low or from the Highest Close / Lowest Close.
I personally prefer to build the swing trend by looking at the highest and lowest closes. This is because there is no ambiguity in constructing the swing trend. When you build it from the highs and lows, you may find an outside bar that marks both a new swing high and a new swing low.
Once you have decided how to build the swing trend indicator, it is comparatively easy to display the size of a swing leg in points or ticks. In the forum download section, you will find the PriceActionSwingPro indicator, which is capable of displaying the swing sizes in ticks. It uses method 1 (ticks or percent) and has an option to build the swing legs from highs and lows or the closes.
I also know other indicators, but they are not free of charge.
