Swing high and swing low
Also called swing points, fractals. What it means, how it looks on a gold (XAUUSD) chart, and the mistake most traders make with it.
Swing high and swing low: A swing high is a candle with a lower high on each side; a swing low has a higher low on each side. Swing points define market structure and mark where stop losses (liquidity) collect.
Swing high and swing low on a gold chart
On the 1-hour chart, a candle topping at $4,142 with lower highs at $4,136 before and $4,130 after is a swing high. Buy stops from short sellers sit just above $4,142.
How traders use it
Traders mark recent swing highs and lows on the 1-hour and 4-hour charts as liquidity targets and as references for breaks of structure.
Common mistake
Marking every minor wiggle. On gold's 1-minute chart there are hundreds; the ones that matter are clear on the 15-minute chart and higher.
Questions
What does swing high and swing low mean in trading?
A swing high is a candle with a lower high on each side; a swing low has a higher low on each side. Swing points define market structure and mark where stop losses (liquidity) collect.
How is swing high and swing low used on gold (XAUUSD)?
Traders mark recent swing highs and lows on the 1-hour and 4-hour charts as liquidity targets and as references for breaks of structure.
Educational content, not financial advice. Every concept here is a probability, not a guarantee.
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