Choose four points in time order
For a bullish reversal hypothesis, A is a high, B a low, C a lower high and D a lower low. The bearish version reverses those directions. Use the same timeframe, session and price source throughout. Wick extremes and closing prices can produce different measurements, so specify which one defines your points.
- Require A, B, C and D to occur on increasing bar indices; do not reuse one bar for two points
- Define how to handle equal highs or lows and a newer, more extreme pivot before coding
- Cancel an unfinished bullish candidate if price breaks above A; reverse the condition for a bearish candidate
- Keep the last unconfirmed swing provisional instead of rewriting earlier trades after it moves
| Point | Bullish reversal candidate | Selection constraint |
|---|---|---|
| A | Starting swing high | Use a fixed pivot or reversal-threshold rule |
| B | Swing low below A | Measure AB only after B is confirmed |
| C | Retracement high between B and A | Freeze the candidate once C is confirmed |
| D | Completion low below B | Distinguish a projected price from a confirmed swing |