In this blog I am going to discuss an interesting concept which may be a biggest confusion while deciding number of bars for analysis
Actually number of bars is a very critical thing to select and I will tell you why with some examples
Example 1 :
Based on chart posted above If I ask a trader1 to trade on swing AB, a trader will start studying which is a swing AB in above chart and will select left AB green lines swing and will keep waiting for price to make CD by breaking out of B zone
Now if I ask a trader2 to trade swing AB but only recent one on chart, here is how he will select
Which AB Swing will be more accurate?
the answer is Trader B's chart.
The reason behind this in first chart where left swing was selected, from there to end of chart there are many bars
but on the second chart, there are less bars but its completely forming AB swing, so the moral is regardless the number of bars, what is the latest, works great,
Now lets say there is a case where there was not so many internal swings but there were many bars
So
so in this case your adaptive bars will be still more number of bars because there was no internal swings and this one is the only latest AB Swing
now you know how to select a right swing and calculate adaptive bars.
