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2013issue C108-9

Smoothed percent-b divergences for numbered swing-wave rules

A swing-trading construction can inspect price-indicator divergences by pairing a zigzag wave-count overlay with a separate lower-pane oscillator. That pane is a smoothed Percent-b reading associated with Bollinger Bands, so it locates price inside a volatility envelope rather than offering a separate price model. The oscillator definition arrived later than the wave-count charts, so the swing procedure is assembled as modular rules.

  • A swing-trading construction can inspect price-indicator divergences by pairing a zigzag wave-count overlay with a separate lower-pane oscillator.
  • The lower-pane study is a smoothed Percent-b oscillator, the band-relative Percent b associated with Bollinger Bands, not an unnamed generic oscillator.
  • An hourly euro-spot chart was the practice surface, and one reported setup used a zigzag percentage of 1, an ATR period of 1, an ATR factor of 1.5, and autoscale as an open chart-scale choice.
  • The oscillator definition arrived later than the wave-count charts, so the swing procedure is assembled as modular rules rather than one finished overlay.
Entries in this reading3 entries
Current trackSwing trading44 readingsBollinger Bands84 readingsPrice-indicator divergence142 readings

Pair a zigzag count with a lower-pane oscillator

A swing-trading construction can inspect price-indicator divergences by pairing a zigzag wave-count overlay with a separate lower-pane oscillator. A zigzag-wave-count is a percentage-filtered swing overlay used to label successive waves and keep only moves large enough to count.

A divergence is a disagreement between a price swing and a swing in a lower-pane oscillator, used as a candidate signal rather than a finished forecast. An hourly euro-spot chart was used as a practice surface for wave counting with that zigzag overlay.

Name the oscillator as smoothed percent-b

The lower-pane study used on those divergence charts is a smoothed Percent-b oscillator, not an unnamed generic oscillator. Percent b is a Bollinger Bands oscillator that locates the latest price inside a volatility envelope so band position can be compared with price structure.

Smoothed Percent-b is that Percent-b variant with extra smoothing so oscillator turns are easier to line up with a wave count. Because Percent b is associated with Bollinger Bands, the divergence pane is a volatility-envelope reading rather than a separate price model.

Record the filter set and the chart-scale choice

One reported setup used a zigzag percentage of 1, an ATR period of 1, and an ATR factor of 1.5, and treated autoscale as an open chart-scale choice. An ATR factor is a multiple of average true range that sizes the swing filter against recent bar range.

Chart-scale is the vertical scaling choice, including autoscale, that changes how the same zigzag and oscillator settings appear. Those choices belong with the wave-count overlay, not with a later change of oscillator.

Assemble swing rules as modular parts

The oscillator definition arrived in a later installment than the wave-count charts, so the swing procedure is assembled as modular rules rather than one finished overlay. Swing-trading-rules are one procedure that states when to enter, exit, or stand aside across the system's holding period.

Because the pane and the wave count were specified separately, the same hourly structure can be reviewed only after both parts are named and the filter set is held still.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
13 of 35 in the Swing trading track
20138-9 pp.Next on Swing tradingPortable swing rules for candle turns and a 1-2-3 wave countSwing-style rules are described as usable on any market that produces regular, sufficiently large moves.
All readings on this track · 35 readings
  1. 2001Swing trading with trailing stops and fixed loss exits
  2. 2003Linear regression swing alerts and trailing stops
  3. 2005Range-width gates for swing entries at base edges
  4. 2006Beyond setups: a six-factor trading process
  5. 2007Angle of ascent, chart scale, and style-fit
  6. 2010Stacking a short-horizon oscillator with a moving average and swing hold rules
  7. 2010A weekly contest long treated as one swing procedure
  8. 2011Four-color volume-price states for long-only swing actions
  9. 2012Classify momentum, velocity, or volatility before the swing signal
  10. 2013Swing rules as a portable entry and exit procedure
  11. 2013Constructing paired percent-b and stochastic swing oscillators
  12. 2013Give the fast band line and the slow stochastic complementary jobs
  13. 2013Smoothed percent-b divergences for numbered swing-wave rules
  14. 2013Portable swing rules for candle turns and a 1-2-3 wave count
  15. 2013A three-average swing and breakout case study
  16. 2013Constructing swing trades with a fifty-day average and a five-bar exponential average
  17. 2014From aliasing and dilation to a roofed stochastic swing
  18. 2014Channel width and trend-filter lookback as separate swing-trading choices
  19. 2016Constructing volume-confirmed multiday breakout swings
  20. 2017Constructing swing signals from a volume-weighted average cross
  21. 2017Golden-cross swing entry with a trailing-stop exit
  22. 2017One swing procedure: group leadership first, then a volume-price leave
  23. 2017Four-day green-candle breakout entry as one swing procedure
  24. 2017Swing pivots need a 100-period crossover and a breakout candle
  25. 2017Supply and demand zones as bounded swing maps
  26. 2018Three-bar volume-confirmed swing breakout
  27. 2018Tight stops first on swing breakouts with a range filter
  28. 2018Constructing trend and swing rules from horizon to crossover
  29. 2019Decade-level breakouts as one closed swing procedure
  30. 2019Inverse-pair swing trading with a shared buy-stop
  31. 2019Week-range next-day breakout on bitcoin pairs
  32. 2019Ranking strength before confirming a multi-timeframe breakout
  33. 2019Forty-five-degree multi-week swing breakout as a closed procedure
  34. 2020A dual pending-stop pair as one bitcoin swing construction
  35. 2020High-low activator, directional oscillator, and momentum swing agreement
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