2010issue C1022-29
Clear-method noise alerts for swing entries and exits
The Clear method classifies short-term swing direction from whether successive price-bar ranges overlap, without using the open or close and without a calculation delay. Inside an established swing each bar continues the swing, straddles the reference extreme as noise, or clears through that extreme and reverses, and the same noise state can watch for a pullback-entry or review an exit or hold.
- Classify swing direction from whether successive bar ranges overlap, not from the open or close.
- A new down swing starts when price clears below the highest low; a new up swing starts when price clears above the lowest high.
- A noise bar straddles the current extreme, so the swing is pausing rather than reversing and adds no new directional information.
- Code the same noise state as an entry watch after a pause and as an exit or hold review when a directional move stops advancing.
How the Clear method reads a bar
The Clear method classifies short-term swing direction from whether successive price-bar ranges overlap. It does not use the open or close, and it has no calculation delay.
Each price bar is treated as a range distribution. Swing direction changes only when one bar's range sits entirely above or below the prior reference extreme. A clear is a bar whose entire range is on one side of that extreme, so the two bar distributions do not overlap.
Continue, pause, or reverse
A new down swing starts when price clears below the highest low. A new up swing starts when price clears above the lowest high. The highest low is the rising low extreme of an up swing. The lowest high is the falling high extreme of a down swing.
Inside an established swing a later bar can only continue the swing, straddle the reference extreme as a noise bar, or clear through that extreme and reverse the swing.
A noise bar straddles the current highest low or lowest high. The swing is then pausing rather than reversing, and the bar adds no new directional information.
Turn the same noise state into entry and exit rules
Most long-term price patterns in the source sit between 40% and 50% noise. A noise-percentage reading can be treated as a compact measure of how continuous a directional move is.
The same noise state can be coded as an entry watch after a pause and as an exit or hold review when a directional move stops advancing. A pullback-entry is taken after a noise pause inside an established swing, rather than on the first clear of a new direction.
One worked construction in the source is to buy a pullback after noise and later exit after a fixed percentage move. That sequence is presented as one integrable procedure, not a universal method. A rule-based-entry is a predetermined procedure that maps swing state, noise, and execution constraints into enter, exit, or stand aside.
All readings on this track · 10 readings
- 1997A two-gate held-out test of hand-labeled pullback nets
- 2004A 50-day average touch as a screening procedure
- 2005Write a moving-average pullback as one procedure
- 2005How to write a short moving-average pullback as one procedure
- 2007Failed-breakout shorts with a half-width exit
- 2008Three-gate pullback entries from exchange tick breadth
- 2010Clear-method noise alerts for swing entries and exits
- 2011Same pullback rules, different market modes
- 2012Pixel-grid pullback and sector color alignment
- 2013Untested pullback entries need quantified exits