All language subtitles for 2. Swing High And Swing Low (Transcribed on 06-Oct-2023 01-02-51)

Before we move any further in market phase, let's discuss first swing high and swing low.

So this is just a terminology that you will often hear in trading community.

So swing highs and swing lows represent the extremities of a certain move.

A swing higher refers to a pick and price. A swing low refers to a drop in price.

So in a not trending market, our higher high is our swing high and our higher low is our swing low.

And in a down trending market, our swing low is our lower low and our lower high is our swing high.

Okay. So let's have an example USDJPY for our time frame.

Now when it comes to swing high and swing low, we can only identify this in hindsight, but it will come in handy when plotting support and resistance.

So let's now identify the peak and the trough in this currency pair.

So the obvious one here is first this one. So this is our swing swing high and then this one is swing low.

Right. So trough a pick and then trough in price. Okay.

And then we also have a pick in price right here.

So this would be our swing higher or our higher high right.

And then price moved to the downside creating a higher low and an obvious trough in price.

So this would be our swing low. Okay. And then price rally to the upside creating a higher high.

Okay. Once price moved to the downside. Okay.

We can now identify this as a as our swing high. Okay.

And then price price made a higher low.

And now once price started to move to the upside, we can now identify this as our swing low. Okay.

Another example euro USD for our time frame. So as we can see, we are in a down trending market. Okay.

So our obvious swing low right here is this one. So this is our lower low or our swing low.

And then price made a lower high. Now once price started to move to the downside, we can now identify this as our swing high.

Okay. And then swing low trough in price.

And then swing high pick in price. Okay. And then we have another one here swing low.

And then we have another one here for swing high. All right. So again, swing high and swing lows are just terminologies that you will often hear in trading community.