Trading strategies
Swing high / swing low
Definition
A peak or trough on the chart with lower highs (or higher lows) on both sides. In an uptrend, each swing low is higher than the last.
Example
Say five daily candles have highs of $41.20, $41.80, $42.50, $42.10 and $41.60. The middle candle, at $42.50, is a swing high because the highs on both sides are lower; a swing low is spotted the same way using the lows. Many traders require two candles on each side, so that swing high is confirmed only once the fifth candle closes.
Hypothetical numbers, for illustration only.
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