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Intermediate Trend: The intermediate swing chart, or two-bar chart, follows the two-bar movements of the market. From a low price each time the market makes a higher-high than the previous bar for two consecutive time periods, an intermediate trend line moves up from the low two bars back to the new high. This action makes the low price from two bars back an intermediate bottom. From a high price each time the market makes a lower-low than the previous bar for two consecutive time periods, an intermediate trend line moves down from the high two bars back to the new low. This action makes the high price from two bars back an intermediate top.
The combination of intermediate swing tops and bottoms forms the intermediate trend indicator chart. The crossing of an intermediate swing top changes the intermediate trend to up. The penetration of an intermediate trend bottom changes the intermediate trend to down.
