This is an example of the J Livermore Swing Trade technique:
The trading rules:
Up trend series of higher highs and highers lows
Down trend series of lower lows and lower highs
To start watching for a new trend this must have advanced: 4% or more since the last low (up trend) or last high (down trend)
To enter a new trade in the new trend the price must also exceded 2% from the first high for longs or 2% from the last low for shorts.
In the chart in yellow the 4% filter is showed, in green the 2% filter, in green a winning trade and in red a loose one.
The trading rules:
Up trend series of higher highs and highers lows
Down trend series of lower lows and lower highs
To start watching for a new trend this must have advanced: 4% or more since the last low (up trend) or last high (down trend)
To enter a new trade in the new trend the price must also exceded 2% from the first high for longs or 2% from the last low for shorts.
In the chart in yellow the 4% filter is showed, in green the 2% filter, in green a winning trade and in red a loose one.