Infographic: Understanding Swing Highs & Swing Lows

Swing Highs & Swing Lows

The Essential Peaks and Valleys of Price Action in Trading

🔺 Swing High (The Peak)

A Swing High marks the highest point price reaches in a given move before reversing downwards. It acts as a potential resistance level.

Price Moves Up

📈

Forms a Peak

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Price Moves Down

📉

🔻 Swing Low (The Valley)

A Swing Low marks the lowest point price reaches in a given move before reversing upwards. It acts as a potential support level.

Price Moves Down

📉

Forms a Valley

🏞️

Price Moves Up

📈

🧠 A Simple Analogy: Hills and Valleys

Imagine a line of hills and valleys — you’re just marking the tops and bottoms.

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The Hilltops

The very tops of the hills, where the land stops rising and begins to descend, are the market's **Swing Highs**.

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The Valley Floors

The lowest points in the valleys, where the land stops falling and begins to rise, are the market's **Swing Lows**.

Identifying these points is a crucial first step for traders to understand market structure, trends, and potential areas of support and resistance.