Building reaction zones with swings and median lines

Locate the action segment first

Price structure is handled as paired action and reaction segments. The start and end of the action segment must be located before a later reaction segment can be projected.

Two swing patterns are used to place that structure. A continuation pattern precedes the reaction and is read as the existing trend still being in force. A reversal pattern appears at the end of an action-reaction cycle and is read as the start of a new action.

Mark the reaction swing and its triggers

Once a reaction swing is marked, horizontal lines above and below the swing points act as price triggers. Those lines must be crossed before a signal is treated as active.

Copy the time cycle forward

Future reaction dates are built as a time cycle. Count bars backward to the start of the initiating action segment, then project that same count forward.

The projected window is the reaction zone. It is marked with an earlier B-count, when price often first enters the zone and may pause, and a later A-count, treated as the more important time-and-price meeting point.

Draw the median line through the A-count

After price enters the reaction window, a median line is drawn between the opposing reaction-swing marks and extended through the A-count bar to locate a price objective.

The same action and reaction segments can be drawn by hand on any price chart and across more than one timeframe.

Price-flow overlay and further notes

A price-flow overlay combines direction and momentum from short, intermediate, and longer horizons and labels the current signal as weak, moderate, or strong.

Further construction notes attached to the method include swing failure, inside-range days, price outrunning the time count, a 60% line, and a 4-to-7 trade.