Now you know the necessity of Structure and Support/Resistances.
This article explains how to identify the swing highs and lows, which helps us to draw support and resistance lines. The identification of swings highs and lows are our first step into the practical stuff of trading. You need to train your eye to identify them perfectly.
What are the Swing highs/Lows?
These are the turning points in the price.
A candle high is said to be swing high if the highs of two consecutive candles on the right and left of that candle are lower than the high of the considered candle.
A candle low is said to be swing low if the lows of two consecutive candles on the right and left of that candle are higher than the low of the considered candle.
There is always room for subjectivity in trading. Understand the objective definitions of pivot highs and lows first. You will know when to apply subjectivity once you enter into the market.
You can only find pivots in the past. You will never know the future turning points in the markets, as we need two candles on the right side to validate it. We never know what is going to happen on the right side of the chart as it is future.
This article explains how to identify the swing highs and lows, which helps us to draw support and resistance lines. The identification of swings highs and lows are our first step into the practical stuff of trading. You need to train your eye to identify them perfectly.
What are the Swing highs/Lows?
These are the turning points in the price.
A candle high is said to be swing high if the highs of two consecutive candles on the right and left of that candle are lower than the high of the considered candle.
A candle low is said to be swing low if the lows of two consecutive candles on the right and left of that candle are higher than the low of the considered candle.
There is always room for subjectivity in trading. Understand the objective definitions of pivot highs and lows first. You will know when to apply subjectivity once you enter into the market.
You can only find pivots in the past. You will never know the future turning points in the markets, as we need two candles on the right side to validate it. We never know what is going to happen on the right side of the chart as it is future.
