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home | Base Behaviors | Rhythmic Swing Point Low

Rhythmic Swing Point Low

Note:  The historical stock examples given below are for EDUCATIONAL USE ONLY.  They ARE NOT to be used to make buy/sell decisions in today's market.  For more information, please read the HSR Terms of Use.


This price behavior unfolds in two (2) steps:

Step 1Price corrects in a distinct bearish rhythm that features consecutive lower highs AND lower lows.

Step 2Price breaks the bearish rhythm with a higher low AND a close above the high of the low week. 

Behavior Note:  All swing points need confirmation.  To confirm a swing point low, price must make a higher low AND close above the high of the low week before price makes another new low.  Step 2's price action meets this requirement and noticeably breaks the bearish rhythm that had dominated the correction.

What you need to know

A swing point low is a price behavior that indicates a potential change in direction

A Rhythmic Swing Point Low may help you better identify this directional change because there is a noticeable change in the stock's character.

It may also form the price trough of a base.

Historical Stock Chart Examples 1A & 1B:  Comp Siderurgica Nacional ADS (SID) 2004

Click to enlarge 1A

Click to enlarge 1B

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