1. Price descended for five consecutive bars. An up bar formed
and we got a basic pivot low. A basic pivot will never become
valid.
2. Price then swung down below the basic pivot low and made a
lower low. A lower low is a tested pivot. This pivot could evolve
into a valid pivot.
3. Price broke above the highest price point before the
retracement downwards. This was the price action we needed to
confirm that the tested pivot low was valid. The tested pivot
became a valid swing low.
May 21, 2022 1.1K 3
