Trading glossary

What are swing highs and swing lows?

A swing high is a peak with lower highs on both sides; a swing low is a trough with higher lows on both sides.

Swing points are the turning points on a chart. A common definition is a candle whose high is higher than the highs of the candles on either side of it, often two or more on each side. A swing low is the reverse.

Almost every other concept, including market structure, support and resistance, trendlines and pattern boundaries, is built from swing points.

How traders use it

Use a consistent rule for what counts as a swing so you mark the same points each time.
Major swings, those visible at a glance, matter more than minor ones.
The most recent swing on the far side of a trade idea is a natural invalidation level.

Example

On a daily chart, Tuesday's high of 1.2750 is higher than the highs of the two days before and the two days after it. That makes Tuesday a swing high, and 1.2750 a natural level to watch for resistance.

Frequently asked questions

How many candles confirm a swing?

There is no single rule. Two candles either side is common; more makes the swing more significant but later to confirm.

Are swing points the same as fractals?

Bill Williams' fractal indicator uses the same idea with two candles on each side, so they are closely related.

Educational content only, not financial advice. Chart patterns describe probabilities, not certainties, and every pattern can fail. See our disclaimer.