Let’s look at a few more examples of market entries using prior swing
lows and highs. Note that once you identify a setup and are in your price
decision zone for this setup, you will start looking for a prior swing low or
high to trigger your entry. If you are looking at a buy setup, you will be
looking for swing highs; if you are looking at a sell setup, you will be looking
for swing lows. This swing high or swing low may develop before the
trade setup zone is hit or after the zone is met. Either way, it will set up a
valid trigger.
Figure 14-6 shows a buy trigger by simply taking out a prior swing
high on this one-minute chart of the mini-sized Dow. The first option for
an entry would be on a break above the 12145 swing high. You could have