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Breakout
Which bar is the prior high in a swing high and swing low breakout?
Swing high and swing low breakout
What it bets
Once the latest swing high or swing low breaks, this piece of structure is finished.
How the rule is written
Define a swing first. For example, a bar is a prior high only if several bars on each side are lower than it. Break that prior high to go long. Break the prior low to go short. The number of bars between two swings is not fixed.
When it fails
Too loose a definition of a swing, and prior highs and lows pile up, so breakouts become noise. Too strict a definition, and it takes a long time to get one point.
Do not confuse it with
Donchian does not look for swings. It takes the highest and lowest price inside a fixed window. Both are called breakouts, and the trigger price can be completely different.