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Swing high

A bar whose high is higher than the highs of a set number of bars on either side, marking a local peak in price.

Trend structure: higher highs against lower lowsTwo zigzag price paths side by side; the left one steps upward with each peak and trough above the last, the right one steps downward with each peak and trough below the last.UPTRENDhigher highs, higher lowsHHHHHHHLHLHLDOWNTRENDlower highs, lower lowsLHLHLHLLLLLLHH higher high, HL higher low, LH lower high, LL lower low.
How a trend is built. A trend is just a sequence of turning points. While each peak and each dip sits above the one before it the market is trending up; once both start landing below the previous ones the structure has turned down.

The usual definition is a fractal one: a bar is a swing high if the bars immediately before and after it have lower highs. Larger lookbacks, for example two or three bars each side, produce fewer and more significant swings.

Swing highs are the raw material of market-structure. Sequences of them define whether price is making higher-highs-higher-lows or the opposite, they anchor fibonacci-retracement draws, and they mark the levels where resting stop orders from short sellers accumulate.

The catch is that a swing high can only be confirmed after the bars to its right have printed, so the label always arrives late. Indicators such as zigzag-indicator that mark swings are subject to the same delay and will repaint their most recent point.

Related: swing-low, market-structure, zigzag-indicator, equal-highs

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