Swing highs and swing lows are identifiable turning points forming the basic building blocks of market structure.
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Lower highs and lower lows form the structural signature confirming a genuine forex downtrend remains intact.
Higher highs and higher lows form the structural signature confirming a genuine forex uptrend remains intact.
Market structure is built from the sequence of swing highs and lows, revealing trend direction and turning points.
Retracement is a temporary pause within a trend, while reversal marks a genuine change in trend direction.
Pullback trading enters in the direction of a trend during a temporary counter-trend retracement for better pricing.
A false breakout briefly pushes past a key level before reversing, trapping traders expecting continued momentum.
Breakout trading enters positions as price decisively moves beyond a support or resistance level to capture momentum.
Dynamic support and resistance shift with price, typically formed by moving averages or trendlines.
Horizontal support and resistance are fixed price levels formed at prior highs, lows, and round numbers.