Inside Swings

Overview
The Inside Swings indicator identifies and visualizes "inside swing" patterns in price action. These patterns occur when price creates a series of pivots that form overlapping ranges, indicating potential consolidation or reversal zones.

What are Inside Swings?
Inside swings are specific pivot patterns where:
- HLHL Pattern: High-Low-High-Low sequence where the first high is higher than the second high, and the first low is lower than the second low
- LHLH Pattern: Low-High-Low-High sequence where the first low is lower than the second low, and the first high is higher than the second high

Here an Example


These patterns create overlapping price ranges that often act as:
- Support/Resistance zones
- Consolidation areas
- Potential reversal points
- Breakout levels

Levels From the Created Range


Input Parameters

Core Settings
- Pivot Lookback Length (default: 5): Number of bars on each side to confirm a pivot high/low
- Max Boxes (default: 100): Maximum number of patterns to display on chart

Extension Settings
- Extend Lines: Enable/disable line extensions - this extends the Extremes of the Swings to where a new Swing Started or Extended Right for the Latest Inside Swings
- Show High 1 Line: Display first high/low extension line
- Show High 2 Line: Display second high/low extension line
- Show Low 1 Line: Display first low/high extension line
- Show Low 2 Line: Display second low/high extension line

Visual Customization
Box Colors
- HLHL Box Color: Color for HLHL pattern boxes (default: green)
- HLHL Border Color: Border color for HLHL boxes
- LHLH Box Color: Color for LHLH pattern boxes (default: red)
- LHLH Border Color: Border color for LHLH boxes

Line Colors
- HLHL Line Color: Extension line color for HLHL patterns
- LHLH Line Color: Extension line color for LHLH patterns
- Line Width: Thickness of extension lines (1-5)

Pattern Detection Logic

HLHL Pattern (Bullish Inside Swing)
Condition: High1 > High2 AND Low1 < Low2
Sequence: High → Low → High → Low
Visual: Two overlapping boxes with first range encompassing second

Detection Criteria:
1. Last 4 pivots form High-Low-High-Low sequence
2. Fourth pivot (first high) > Second pivot (second high)
3. Third pivot (first low) < Last pivot (second low)

LHLH Pattern (Bearish Inside Swing)
Condition: Low1 < Low2 AND High1 > High2
Sequence: Low → High → Low → High
Visual: Two overlapping boxes with first range encompassing second

Detection Criteria:
1. Last 4 pivots form Low-High-Low-High sequence
2. Fourth pivot (first low) < Second pivot (second low)
3. Third pivot (first high) > Last pivot (second high)

Visual Elements

Boxes
- Box 1: Spans from first pivot to last pivot (larger range)
- Box 2: Spans from third pivot to last pivot (smaller range)
- Overlap: The intersection of both boxes represents the inside swing zone

Extension Lines
- High 1 Line: Horizontal line at first high/low level
- High 2 Line: Horizontal line at second high/low level
- Low 1 Line: Horizontal line at first low/high level
- Low 2 Line: Horizontal line at second low/high level

Line Extension Behavior
- Historical Patterns: Lines extend until the next pattern starts
- Latest Pattern: Lines extend to the right edge of chart
- Dynamic Updates: All lines are redrawn on each bar for accuracy

Trading Applications

Support/Resistance Levels
Inside swing levels often act as:
- Dynamic support/resistance
- Breakout confirmation levels
- Reversal entry points

Pattern Interpretation
- HLHL Patterns: Potential bullish continuation or reversal
- LHLH Patterns: Potential bearish continuation or reversal
- Overlap Zone: Key area for price interaction

Entry Strategies
1. Breakout Strategy: Enter on break above/below inside swing levels
2. Reversal Strategy: Enter on bounce from inside swing levels
3. Range Trading: Trade between inside swing levels

Technical Implementation

Data Structures
type InsideSwing
int startBar // First pivot bar
int endBar // Last pivot bar
string patternType // "HLHL" or "LHLH"
float high1 // First high/low
float low1 // First low/high
float high2 // Second high/low
float low2 // Second low/high
box box1 // First box
box box2 // Second box
line high1Line // High 1 extension line
line high2Line // High 2 extension line
line low1Line // Low 1 extension line
line low2Line // Low 2 extension line
bool isLatest // Latest pattern flag

Memory Management
- Pattern Storage: Array-based storage with automatic cleanup
- Pivot Tracking: Maintains last 4 pivots for pattern detection
- Resource Cleanup: Automatically removes oldest patterns when limit exceeded

Performance Optimization
- Duplicate Prevention: Checks for existing patterns before creation
- Efficient Redraw: Only redraws lines when necessary
- Memory Limits: Configurable maximum pattern count

Usage Tips

Best Practices
1. Combine with Volume: Use volume confirmation for breakouts
2. Multiple Timeframes: Check higher timeframes for context
3. Risk Management: Set stops beyond inside swing levels
4. Pattern Validation: Wait for confirmation before entering

Common Scenarios
- Consolidation Breakouts: Inside swings often precede significant moves
- Reversal Zones: Failed breakouts at inside swing levels
- Trend Continuation: Inside swings in trending markets

Limitations
- Lagging Indicator: Patterns form after completion
- False Signals: Not all inside swings lead to significant moves
- Market Dependent: Effectiveness varies by market conditions

Customization Options

Visual Adjustments
- Modify colors for different market conditions
- Adjust line widths for visibility
- Enable/disable specific elements

Detection Sensitivity
- Increase pivot length for smoother patterns
- Decrease for more sensitive detection
- Balance between noise and signal

Display Management
- Control maximum pattern count
- Adjust cleanup frequency
- Manage memory usage

Conclusion

The Inside Swings indicator provides a systematic approach to identifying consolidation and potential reversal zones in price action. By visualizing overlapping pivot ranges

The indicator's strength lies in its ability to:
- Identify key price levels automatically
- Provide visual context for market structure
- Offer flexible customization options
- Maintain performance through efficient memory management