Establishing a Swing Point

We are seeing a nice little bounce in the markets from Friday’s lows. Today’s highs should mark the other side of the swing point calculation which is: (Friday’s low + today’s high)/2.

This should help to measure the next leg down.

I just like to keep it simple; you really don’t need AI.

For example, the recent high on the S&P is 5265, Friday’s low was 4953, today’s high at 10:30 AM CDT is 5068.

That makes the swing point be (4953+5068)/2 = 5010.

Then initial decline was 5265-5010 = 255.

Then calculating the start of the next buy area is 5010-265 = 4745.