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Swing low

A bar whose low is lower than the lows of a set number of bars on either side, marking a local trough 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 mirror of a swing-high. A three-bar swing low is a bar with lower lows on both sides; wider definitions require several bars each side and produce a cleaner, sparser set of points.

Swing lows are where uptrend trendlines are anchored, where stops for long positions commonly sit, and where a break signals structural change. In an uptrend, an intact sequence of rising swing lows is the simplest possible definition of the trend still being in force.

Like swing highs, they are confirmed only in hindsight. A trader watching live cannot know whether the current low is the swing low until the market proves it by moving away, which is why entries at swing lows usually require an accepted amount of drawdown or a confirming pattern.

Related: swing-high, market-structure, trendline, invalidation-level, higher-highs-higher-lows

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