Swing Sizes and Sensitivity Setting
These swings come in different sizes, the size determines the peak's significance.
A swing high of 20 bars effectively means that at least 20 bars on the left have lower highs and 20 bars on the right have lower highs.
A smaller swing of 3 would mean that 3 bars on the left have lower highs and 3 bars on the right have lower highs. There are obviously many more swings of size 3 on the chart vs. swings of size 20.
In the divergence study, we set the size of the peaks we are after using sensitivities.
Sensitivity settings for the 1st peak and the 2nd peak are separate. This allows to fine tune the chart pattern we are after. It is common to have the 1st peak be a rather large swing where as the 2nd peak is a smaller one. Smaller peaks are detected earlier.