Understanding Market Swings in Trading

Everyone says watch the last low, but this chart has

five. Which one? Most of them are just noise.

Small pauses inside the same move.

There are a few ways to mark swings. Here's the rule we use.

The low that counts is the one that started the move, that broke the

last high. Watch. Price dips here, then pushes

up and closes above the old high. That dip is the

real low. Traders call it the protected low.

As long as it holds, buyers are still in control.

These small dips? Price can break them and nothing changes.

But if the protected low breaks, the whole picture changes.

So don't mark every small dip. Mark the low that broke something.