Swing measurement system

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«I'd rather be an optimist and a fool than a pessimist and right»
(Albert Einstein)

This method is applied in presence of continuation formations (flags, small rectangles, flagpoles, small triangles...) and starts from the proven assumption that a consolidation model is placed between two expansive movements with equal amplitude. In order to calculate the target, the movement that leaded to the formation creation is overturned; the examples will clarify the application of the method.

Swing measurement.jpg

Empirically the system turned out to be very reliable; it is necessary to specify that the identified target is to be considered a first target. In any case the open positions will be closed just in case of a fall in the prices.

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