First 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.
Description
After making a new low, price makes a higher low AND closes above the highest price of the lowest week for the first time since the start of its correction.
Unlike the Rhythmic Swing Point Low, the First Swing Point Low doesn't interrupt a distinct price rhythm.
Thus, a First Swing Point Low signal may be more difficult to identify.
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.
What you need to know
A swing point low is a price behavior that indicates a potential change in direction.
The First Swing Point Low represents a subtle change in a stock's character (for the first time) that may alert you before a stock reverses direction.
It may also form the price trough of a base.
Historical Stock Chart Examples 1A & 1B: Harley-Davidson (HOG) 1990-1991
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Click to enlarge 1A
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Click to enlarge 1B
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Please >>CLICK HERE<< to go to the next price behavior within Base Behaviors.
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