Swing High

A swing high is a peak on a price chart, a candle whose high is above the highs of the candles on either side of it; a swing low is the matching trough.

A swing high is a peak on a price chart: a candle whose high is above the highs of the candles on either side of it. The matching trough is a swing low, a candle whose low is below the lows on either side.

Swings are the turning points that trends, ranges and most chart patterns are built from. Traders commonly mark one with two candles on each side.

Why do swing highs matter?

Swing highs matter because comparing each one with the previous swing high, and each swing low with the previous low, tells you whether the market is trending up, trending down or ranging. The table shows how each sequence of swings is usually named.

Comparing each swing with the previous one of the same kind describes the market's structure, as explained in trends and ranges:

Sequence Common name
Higher highs and higher lows Uptrend
Lower highs and lower lows Downtrend
Highs and lows at similar levels Range

Swing highs are also where resistance levels are usually drawn, as in support and resistance, and where informal labels such as break of structure come from.

Worked example: swing high on EURUSD

Five consecutive H1 candles have these highs:

Candle High
1 1.0850
2 1.0862
3 1.0875
4 1.0868
5 1.0859

Candle 3's high, 1.0875, is above the two highs before it and the two after it, so with a two-candle rule it is a swing high. Until candles 4 and 5 had closed, it was only a possible swing high: if candle 4 had reached 1.0880, candle 3 would not have counted. That is why the newest candles on a chart are left unmarked.

Five candles with highs of 1.0850, 1.0862, 1.0875, 1.0868 and 1.0859; the middle candle's high is above the two highs on each side and is marked as the swing high with a dashed line
With a two-candle rule, candle 3 is a swing high: its high is above the two highs before and the two after.

How do traders mark swings consistently?

Traders mark swings consistently by using one fixed candle rule, working on the timeframe they trade, and marking only swings whose later candles have closed. Two candles on each side is the common default rule. The three habits are explained below.

How do you mark a swing high in MetaTrader 5?

MetaTrader 5 does not mark swings automatically in its standard indicators, so you mark each swing high yourself with a horizontal line. Use horizontal lines or other analytical objects, read exact highs in the Data Window, and apply the same rule on every swing.

What do traders often get wrong about swing highs?

The common mistake is treating a swing high as a ceiling, when it only marks where price turned down once. Traders watch what happens when price returns: a close above it breaks the structure, and a rejection there turns it into resistance.

Sources

Learn it properly in the full lesson: Market Structure in Forex: How to Read Trends and Ranges

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