CIT SwingT

The CIT SwingT (SwingTime) indicator is a pattern recognition indicator which shows the beginning, end and length of price swings detected by the indicator's algorithm. Up swings are painted green, down swings are painted red.

Users have the ability to adjust the sensitivity of the indicator to price changes by adjusting the CIT setting from Inputs. Higher CIT inputs will result in fewer swings, but may cause delayed entries and exits. The default setting is set to 3 and should work for most instruments in any time frame.

There are also two horizontal dotted lines. They allow users to easily compare the length of the current swing with regard to previous swings. An extreme swing reading should be interpreted as a warning that the swing is lasting longer than normal and may be nearing its end. The horizontal dotted line corresponds to the average daily swing length. The average swing length for stocks in the SP500 is 5 days. This may disabuse you of the notion that there's a magic 9 count.

There are two things to keep in mind:

1/ In an uptrend, the length of upswings should be longer than the length of counter-trend swings. The opposite is true for down-swings.

2/ A CIT should be considered when the length of the last up/down swing exceeds the length of the previous counter-trend swing.

It is recommended to sync the CIT SwingT CIT input with the CIT Bars CIT input, and to monitor the size of the CIT Bars. A narrowing of CIT Bars, following a long swing run, is a reliable early warning that the current swing is likely to end and change direction.

In case of a prolonged up/downtrend, when the duration of the current swing exceeds the average trend duration, it is also a good idea to check the CIT Angles and make adjustments in case they lag price too much.