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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.
