Description

• Plots a line connecting points wherever a reversal is encountered in trend

Interpretation

• At swing top, a reversal in trend occurs from upward to downward direction
• At swing bottom, a reversal in trend occurs from downward to upward direction

Default Parameters Used/Inputs

• High Line
• Low Line
• Reversal Pcnt
• Theoretical

Returns/Output

Swing reversal price values of the stock

Formula

In uptrend, if L[X]<=(1-P)*Hi[X], downtrend starts
In downtrend, if H[X]>=(1+P)*Lo[X], uptrend starts
Hi[X]=Highest(H[X],1..X) and Lo[X]=Lowest(L[X],1..X)
where H[X] and L[X] are the input lines