X Point Swing Charts are similar to x bar 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 points in the opposite direction for a swing to occur. This is similar to a ZigZag indicator that moves based upon a fixed % move against the trend.
Similar to the x Bar 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 35 point 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) the underlying market to move at least 35 points against the trend before a swing was triggered.
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 point determines the number of points that the market must move from its previous swing before a swing change can take place. This method provides an excellent filter against short term counter trend movements leaving just the primary swings in view.
