Studies: Pesavento Pattern selective swings

Q: I have a somewhat minutiae question re Pesavento Patterns. Specifically how it chooses, or disregards a swing high/low as a destination of a line.

For example see
http://www.dacharts.org/archives/Ensign_Wed_class_transcripts/Pesavento_Patterns_support_DB.htm

Looking at the 3rd chart from the top of IBM daily.  See the big top at the beginning of Jan 05.  It has four lines coming off of it to four prior highs.

Why doesn't it have one additional line going from the top to the 2nd swing point preceding it, the one that's the origin of the line labeled 1.08 ? Why was that swing hi disregarded?   Can you give me the basics of it chooses/disregards a point?

This is just for my own edification as sometimes I look at a point and wonder why it isn't used when I likely would have chosen it if doing by hand.

A: I think this is the chart in question:

 

 

The reason is because the swing high in question without the connecting line to Jan 5th is LOWER than the swing high that follows.  It is this being lower that causes it to be skipped as we look back to find the swing highs to connect to Jan 5th bar.


Last modified 10/2/07 10:19 PM