In these blogs, we have done a lot of work on mapping markets with swings. In this post, we will look at how minor swings grow up to be major swings and ways we can read and trade this dynamic. These will fall under the category of type 2 trades, expand then continue. Its a type of waiting outside the immediate price action that can be very relaxing. You can read about “The 3 Types of Trades” options on the Language of Markets home page.
To find the true structured support and resistance levels in a market, we use a contraction of price and a wash of that contraction. You can see these true levels on this 20 minute E-Mini S&P chart I posted for our members. In the video, I describe the steps to the process of a wash and rinse structure as a pivot component of a swing and how that can help us to read the true supply/demand levels.