Presented By Jeff Manson

Phone number 602-441-9646

Phoenix Online Trading Academy

Find the RHYTHM of any product you want to trade by using the average of the swing size.

Here we had a nice “Long Setup” which was

one of the examples we talked about in the

“Hour with the Pro’s”

Today we are going to cover a concept called

The “average Swing Size” is simple to understand and can reveal many pieces of information to help us evaluate the current status

of a trend and what the next 2-3 Swings will be on average.

We are going to use the “Average Swing Size” to help us identify the end of one trend and the start of another. This is the art of visualizing the right side of the chart and using probabilities to

anticipate that “Hard Right Edge”

A trader needs to “know” his/her product to help identify a good trade.

Measuring each move up and down to find the average swing size is a

good way to begin to see a rhythm and flow of any product’s personality.

,Any moving average will work. But for now use one: either

20 / 50 / 200 as you learn this concept.

A “Swing Size” is not bound by time therefore it is important to

use the highs and lows above and below the moving

average.

The “Swing Size” is not an indicator; it is a method to

discover the underlying rhythm of the price swings.

These swings in price, above and below the moving average have

rhythm that applies to the time frame you are looking at. You will

find by using multiple timeframes that there can be a confluence of

price, where one swing stops and another begins.

There must be a minimum number of Transitions to discover the

average swing for the next move. Look for 8-13 Transitions. This

will give you 3 swings up and 3 swings down to get an average.

4. Identifies intraday repeatable swings on or around certain times. (Like the 10:00 or 11:45

reversals or even when bonds close.) All in your Pro Trader workbook.

Plot the Swing Size to get a feel for where

the turning points are and anticipate the

next Support & Resistance levels.

It is not always crystal clear but when you do

your research you can find certain months are

typically up and others are down.

Plot the Swing Size to get a feel for where

the turning points are and anticipate the

next high and low and look for your setup

to enter on a smaller time frame.

Now that you’re getting the idea that there is a lot of information we

can gather from just looking at the price swings:

let us add more…

by looking at multiple swings in price and averaging those swings to

anticipate 2-3 swings to the right side of the last bar or candle.

We will take multiple swings and average them over time to get an

idea of the average swing size: the information we are looking for to

help us visualize the right side of the chart.

Notes:

3. We take those swings and get an average number of bars in a swing.

4. We take the same swings and get an average time duration for a swing.

We can use the 488 to anticipate

the next swing in price.

Take the average of the last 3 swings up and an

average of last 3 swings down, then plot them.

Look for other supporting technical data.

Price has met a strong support level and the possibility of

a bounce off that level is very real. Since I have 5 swings

to the upside and I am looking for a bounce or swing up I

will add the swings then divide by number of swing to get

an average swing size up.

Also keep in mind we are using an average. These are not absolute

measurements. They give us an idea where price may move, it may often

overshoot or undershoot the target.