When the comes to mind, many assume the indicator is specifically for trend trading. Yes, it is true that it is for trend trading but it has several purposes outside of trend trading. It is a classic textbook indicator for finding present, future and past .
As you can see once you can spot out the swing highs ( which is being showed in the chart above) or swing lows if the market is in a bear market. You should be able to easily spot the swings and expect the market to respect the swings support or resistance with a break of the swing high and at times you can find the market to pull back to the swing high or low also known as support or resistance.
That is 4 breakouts of swing highs along with 4 pullbacks on disney in the last 2 years. This type of price action happens all the time on any stock or instrument.