This is not my invention. It is a generic concept that I picked up from the trading world.
First level swings are termed as Short term Highs and Short term Lows ( STH and STL )
The second level swings are termed as Long term Highs and Long term Lows (ITH and ITL )
An STH is formed when the 2nd high is higher than the highs on either side.
An ITH is formed when the 2nd STH is higher than the STH on either side.
Likewise logic for lows.
An example, A can be expected if an ITH level is taken out after a ITL is formed after the ITH.
Inside bars: Inside bars are ignored. They can be marked, turned off by default.
Also, a "X" is placed over a swing point if two consecutive swings form simultaneously. This is turned off by default.
- Fixed bug that missed marking a STH or STL right after an opposite one was discovered
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.