If you don't understand this, you're trading blind. 👀
Before I enter any trade, the first thing I look for is this:
Where are the swing highs and swing lows?
They’re not just random peaks and dips.
They’re the map the market gives you—if you know how to read it.
📌 What Are Swing Highs & Lows?
A swing high is a peak where price forms a high, then declines on both sides.
A swing low is a valley where price hits a low, then rises on both sides.
They form natural turning points on the chart—like the market pausing to take a breath.
💡 Why They Matter So Much:
Swing points help you:
✅ Identify market structure (uptrend, downtrend, consolidation)
✅ Pinpoint entry and exit zones
✅ Spot areas of support and resistance
✅ Track liquidity zones where big players act
They’re also essential for trailing stop-losses and breakout setups.
🔍 How to Identify a Swing High/Low:
Use the 3-bar rule:
Swing high = candle with a higher high than both neighbors.
Swing low = candle with a lower low than both neighbors.
You can spot them on any timeframe, but they’re most reliable on 4H and daily charts.
🧠 Pro Tips & Considerations:
In strong trends, swing points can be shallow and still valid.
Fakeouts often occur just beyond a previous swing—watch for liquidity grabs.
Confirm with volume or momentum indicators for better accuracy.
🧩 Best Indicators to Combine With:
📐 Fibonacci Retracement: Aligns beautifully with swing points.
📊 MACD or RSI: Confirm strength or divergence.
📈 Trendlines: Swing points often form key touchpoints.
⚠️ Quick Risk Reminder:
Not every swing signals a reversal.
Many are just temporary pauses in the trend.
Zoom out. Use confluence. Protect your capital.
✅ Learn to see these patterns, and the market stops being noise.
Start marking swing highs and lows on your charts.
Then tell me:
How does this change the way you see price action? 👇
