Swinglines: Reading Trend Changes from Daily Bar Patterns
Summary
The document describes a Swinglines indicator that connects selected bar highs and lows to represent trend direction. It classifies bars by comparing each day’s high and low with the previous day: higher highs and lows, lower highs and lows, inside days, and outside days that close up or down. Inside days reverse the line’s direction; outside days use the bar’s open side to select the line’s endpoint. For outside doji bars, the author applies the same reversal behavior as for inside days.
The accompanying implementation maintains direction state and draws segments as new bars meet those conditions. The author says the behavior was reconstructed by observing charts and video commentary, and reports that it appears to match the referenced indicator. No systematic validation, trading rules, or profitability evidence is provided, so this is best understood as a charting method for interpreting price structure rather than a tested trading strategy.
Key ideas
- The indicator uses relationships between consecutive bars’ highs and lows to represent swings.
- Higher-high and lower-low patterns extend the line to the corresponding bar extreme.
- Inside bars reverse the swingline’s direction.
- Outside bars use whether the close is above or below the open to choose a swing endpoint.
- The author treats an outside doji as a reversal case, but reports no systematic validation or trading results.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.