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Isolation Points or Isolation High/Lows

Isolation High/Lows

Isolation highs occur around a pivot high, when price makes a lower low than the last ‘x’ bars, where ‘x’ is the variable.

Isolation lows occur around a pivot low, when price makes a higher high than the last ‘x’ bars, where ‘x’ is the variable.

Where the bars open or close is not relevant.

On the chart below we show a 4 bar isolation low. The bar labeled ‘A’ has created a higher high than the last 4 bars, where the 4th bar is labeled ‘B’; and there is a pivot low in between A and B.

How to draw in short term trends or waves using trend points

On this chart we demonstrate the use of 4 bar isolations to determine short term trends or waves.

 

 

Move on to Step 4 - Module 1 > Charting Basics: Real Bars