trenddef1

Pivot Point (PP) – A top pivot point is the highest point reached in a swing prior to penetration of the low of the top day.  A bottom pivot point is the lowest point reached in a swing prior to penetration of the high of the low day.

 

trenddef2

 

Swing – The movement from one pivot point to the next.

 

 

Trend Direction – Trend is up as long as new highs and higher lows are being made.  It changes from up to down when the last low prior to the new high is broken.

trenddef3

 

Trend reversal from up to down

 

 

 

trenddef4

 

Corrective action

 

 

 

trenddef5

 

Trend reversal from down to up

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