Swing High and Swing Low
A local peak or trough defined by a stated number of lower highs or higher lows on either side of it.
Formula
Swing High: a high greater than the n highs before it and the n highs after it; Swing Low: the mirror condition
Unit
₹
In depth
Swing points are the building blocks of trend definitions, trendlines and most chart patterns, and stating the n makes the identification objective rather than visual. The unavoidable consequence of the definition is that a swing point cannot be confirmed until n further periods have passed, so every swing high is identified at least n periods after it occurred. This lag is why structure-based rules are always confirming rather than anticipating. Different values of n produce different swing points from identical data, which is why the parameter must be stated.
Worked example
With n = 3, a high of ₹536 is a swing high only once three subsequent sessions have all made lower highs. The swing high is therefore known on day four at the earliest, by which time price may be well below ₹536.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Swing High and Swing Low” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.