Swings help clarify market behavior, filtering out all but important intermediate, or swing, highs and lows. In this session, Kase's technique for drawing swings is explained, and its uses as an entry filter and as an exit technique are elucidated.

QUESTION 4.1   Z with OHLC Bars

1. Draw in Swing One (Insides Off)

QUESTION 4.2   GBPUSD Swing One (Insides Off)

1. This chart shows Swing One (Insides Off). Draw in Swing One (Insides On).

QUESTION 4.3   D with Swing One (Insides Off)

1. This chart shows Swing One (Insides Off). Draw in Swing Two (Insides Off).

QUESTION 4.4   GFF with Swing Two (Insides Off)

1. This chart shows Swing Two (Insides Off). Draw in Swing Three (Insides Off).

QUESTION 4.5   LAZ SMAs (10, 21) with Kase Swing Two (Insides Off)

1. Using SMA crossover entries, show trades where you would have had to wait for a second or consecutive swing.
2. From around June 28, August 30, and October 15 (long trades), show how you would have moved swing stops up, with stops not hit in black and stops hit in blue.

QUESTION 4.6   P with Parabolic (Default) and Kase Swing (1, Insides On)

1. If taking only second or consecutive signals based on Kase Swing, point out which trades based on the Parabolic SAR would not have been taken.
2. Assume you took all other Parabolic entries, show where swing stops would have been better exits, and draw a vertical line showing the difference between the Parabolic exit and the swing exit.
3. Show where swings would have exited early, even if small swings are ignored. Assume reentry upon a second or consecutive upswing.

QUESTION 4.7   BSX with Parabolic Default with Kase Swing One (Insides On)

1. If taking only second or consecutive signals based on Kase Swing, point out which trades based on the Parabolic SAR would not have been taken. Ignoring swings caused by one outside bar is allowable. Make any comments you deem appropriate.
2. Assume you took all other Parabolic entries, show where swing stops would have been better exits, and draw a vertical line showing the difference between the Parabolic exit and the swing exit.