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“M” Top: Double-Top Chart Pattern composed of two main tops and one main bottom.
Main Bottom: A low price followed by at least two consecutive higher-highs and higher-lows.
Main Top: A high price followed by at least two consecutive lower-highs and lower-lows.
Main Trend: The main trend swing chart follows the three-bar movements of the market from a low price each time the market makes a higher-high than the previous bar for three consecutive time periods, a main trend line moves up from the low three bars back to the new high. This action makes the low price from three bars back to a main bottom. From a high price each time the market makes a lower-low from the previous bar for three consecutive time periods, a main trend line moves down from the high three bars back to the new low. This action makes the high price from the three bars back a main top.
The combination of main swing tops and bottoms forms the main trend indicator chart. The crossing of the main swing top changes the main swing to up. The penetration of a main swing bottom changes the main trend to down.
Depending on trader preference, sometimes a two-bar swing is used to determine the main trend.
Minor Bottom: A low price followed by one higher-high and higher-low.
Minor Top: A high price followed by one lower-high and lower-low.
Minor Trend: The minor swing chart, or one-bar chart, follows the one-bar movements of the market. From a low price, each time the market makes a higher-high than the previous bar, a minor trend line moves up from the recent low to the new high. This action makes the previous low price a minor bottom. From a high price each time the market makes a lower-low than the previous bar, a minor trend line moves down from the recent high to the new low. This action makes the previous high price a minor top. The combination of a minor trend line from a bottom and a minor trend line from a top forms a minor swing.
The combination of minor swing tops and bottoms forms the minor trend indicator chart. The crossing of a minor swing top changes the minor trend to up. The penetration of a minor trend bottom changes the minor trend to down.
