A Pullback Rule for Confirmed, Non-Repainting Swing Points

Summary

The document presents a swing-point detector based on pullbacks rather than fixed candle patterns such as three-bar fractals. While searching for a high, it tracks the highest high and the low of the candle that set it; the high is confirmed when price breaks that reference low. For lows, it tracks the lowest low and its candle’s high, confirming the low when price breaks above that level. After confirmation, the search switches to the opposite side, so swings alternate.

The detector evaluates closed candles and draws a swing only once its confirming break occurs. This avoids repainting, but introduces confirmation lag: the latest extreme remains provisional until price reverses through its reference level. An outside bar can extend the extreme and break the reference in the same candle; the described rule treats that candle itself as the swing and starts the opposite leg. The document also describes wick or close confirmation settings and outputs for automated systems. It supplies no performance test, and the method identifies swings only; structure labels and trade signals require separate rules.

Key ideas

• A swing high is confirmed when price breaks the low of the candle that set the tracked high.
• A swing low is confirmed when price breaks the high of the candle that set the tracked low.
• The detector alternates between searching for highs and lows after each confirmation.
• Only confirmed swings are drawn, which avoids repainting at the cost of delayed markers.
• An outside bar can confirm one swing and begin tracking the opposite leg on the same candle.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.