Introduction to the Last Man Standing Swing Point Highs and Lows Indicator
Trading with the trend can be based on the general characteristics and direction of price action based on swing points. It can also be based on a technical indicator such as moving averages.
This indicator combines both concepts into one indicator allowing traders to see the full picture of the trend with just one indicator.
What is the Last Man Standing Swing Point Highs and Lows Indicator?
The Last Man Standing Swing Point Highs and Lows indicator is a custom technical indicator which identifies two sets of swing highs and swing lows. It identifies major swing highs and swing lows and plots a purple dot marking the major swing points. It also identifies minor swing points and plots blue dots marking the minor swing points. This indicator also plots a moving average line, which is preset as a mid-term Exponential Moving Average (EMA) line.
How the Last Man Standing Swing Point Highs and Lows Indicator Works?
Although this indicator does not use an underlying technical indicator for determining its swing highs and swing lows, it does share the same concept with the Zigzag indicator for identifying swing highs and swing lows. It plots dots on an identified swing point whenever price reverses against the current momentum by a height or depth percentage greater than the preset variable.
Its moving average line is a basic moving average line overlayed on the price chart, which can also be modified.
How to use the Last Man Standing Swing Point Highs and Lows Indicator for MT4
There are three main groups of variables that can be modified within the settings to tweak the indicator, the options for the major swing points, the options for the minor swing points, and the options for the moving average.
“Swing Size” both on the major and minor swing points refer to the height or depth which would be considered as a swing point.
“Periods” both on the major and minor swing points refer to the number of bars which would be used as a filter and a basis for identifying swing points.
“Moving Average Method” refers to the type of moving average used, while “Moving Average Periods” refer to the number of periods used on the moving average line.
Traders can use this indicator as a basis for opening trades using a trend following strategy.
Traders simply identify the trend based on the moving average line and the direction of the dots. They could then open trades based on the appearance of a dot in confluence with the direction of the trend.
Buy Trade Setup
When to Enter?
The moving average line should slope up, while the dots consistently rise. Open a buy order on the appearance of a dot below price action. Set the stop loss below the swing low.
When to Exit?
Set the take profit target on the next major swing high level.
Sell Trade Setup
When to Enter?
The moving average line should slope down, while the dots consistently drop. Open a sell order on the appearance of a dot above price action. Set the stop loss above the swing high.
When to Exit?
Set the take profit target on the next major swing low level.
Conclusion
This indicator is probably one of the few technical indicators which has the makings of being a full trading strategy or trading system as a standalone indicator. It can be used as a basis for opening and closing trades.
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Last Man Standing Swing Point Highs and Lows Indicator for MT4