X bar Swing Charts are similar to standard swing charts in that they are a rising and falling line indicator ( hence Trend Line Indicator ) displaying the essence of market movement with the time factor removed. The difference lies in the fact that the determining factor for a swing to occur is the market MUST move x number of bars in the opposite direction consecutively for a swing to occur.
Similar to the Standard Swing chart you have control over the labels and the color of the swing.
Looking at the chart on the left we can see how much information is removed when we apply a 2 bar swing overlay in comparison to the standard swing chart. If you open the larger image you can see how the swing overlay required (in this case) 2 consecutive bars before a swing occurred.
Construction:
As with the other swing chart styles we are concerned with each individual bar. Inside days are ignored simply because they do not provide directional information. The 'x' in X bar determines the number of consecutive bars that must occur for a swing change to take place. This method provides an excellent filter against short term counter trend movements leaving just the primary swings in view.
