Risk Disclosure

Futures, foreign currency and options trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. View full risk disclosure.

Dorschden Swing Trend Solver

The Dorschden Swing Trend solver uses price action and swing points to identify trend.  The SiSwings indicator is used inside this solver to identify when swing points are made.  This solver will produce a Long output when higher lows (HL) and higher highs (HH) are detected, to identify an up trend.  Alternatively, a Short output is produced when lower lows (LL) and lower highs (LH) are detected, to identify a down trend.  Essentially, this solver is outputting the OverallTrend Dataseries from the SiSwings indicator, which is the same as using the SiSwings in the Indicator Threshold solver and selecting the OverallTrend output.  See the Examples section below for an illustration.

Note that when the market exhibits an extreme expansion in price movement, such as a higher high (HH) followed by a lower low (LL), or a LL followed by a HH, the trend direction is unknown and the output will be 0 until the next swing point is completed.

Parameters

This section is common to all solvers.  A description can be found here.
This section is common to all solvers.  A description can be found here.

Swing Parameters

Sets the swing size of Dorschden’s Price Action Swing Trend. Higher numbers will create larger swings, decreasing the sensitivity to swing reversals, and lower numbers will create smaller, choppier swings, increasing the sensitivity.

Sets the maximum price difference between neighboring swing points to be considered a Double Top or Double Bottom.

Video Tutorial

This video is from our weekly Workshop titled Solvers 12-13, on Sep 26th, 2012.
For more benefit please watch in full screen mode, as this video is recorded in HD.

Examples

Example 1: The Basics

This demonstrates the basic function of the Dorschden Swing Trend solver.  This Solver determines trend direction by comparing the current price to previous LowerHighs or HigherLows.

  • Add the Dorschden Swing Trend solver
  • Use the default settings

Notice how the trend cannot be determined until a new swing point is established.

This shows the change that occurs from changing Swing Sensitivity.

  • Add the Dorschden Swing Trend solver
  • Set Swing Sensitivity to 6