Ask - Answer

Hello Everyone
I’m new to this forum and FX trading.
Almost every day I read the materials from “school” and I have a question! Now I am at the elementary level and here, in the third level’s (“Fibonacci”) first lesson (“Fibonacci Who?”) I found the following definition:
“A Swing High is a candlestick with at least two [B][U]lower highs[/U][/B] on both the left and right of itself.
A Swing Low is a candlestick with at least two [B][I][U]higher lows[/U][/I][/B] on both the left and right of itself.”

So I hope someone would like to take a min. to answer me?
What does lower highs, or higher lows mean?
Anyone willing to explain in normal, simple language? Preferably with examples (charts).

Thank you.

Beka

That definition of a swing high is based off Bill Williams there is an indicator on most charting software call a fractal that will identify these.

Since you are in the school and probably dont have a demo account as of yet (I recommend you get one to see the things the school teaches in real time) I have attached a chart and circled a swing low.

Please see the low and the 2 candles on either side if it. They all closed higher

The simplest way I can put it is if you use candlesticks you’d see it in bob’s example trending down then suddenly reverting after it made a pinbar. You treat each candle as 1 and as bob put it its a 3 bar formation so it’d go 1, 2 (the swing high or low), and 3 which confirms that high / low.


Tansen she was asking about a 5 bar/candle swing not a 3 as you pointed out. In all fairness I know why you pointed out the 3 barcandle pattern it is well more efficient IMO but its not what is taught in the school.

Now Beka every single one of Tansen’s swings on his chart also have the same swing high that is taught in the school.

It only means that, price broke high or broke low. Don’t try to overthink too much with that technical crap, remember trading is not a science.

I’m not the best person to answer thiis, but there are several clues to look for on the higher time frames that will indicate the overall direction the market is moving in, or the way the market is structured. I like market structure on the W, D 4h, and 1!h to give me a feel for the overall direction the market is moving in. Look for a high to eclipse a prior high for bullish indications and the opposite for bearish. I don’t trade because of one reason, I try to stack reasons and therefore probabilities. Takes practice, but once you’re familiar with market structure go to lower time frames and look for fib retracements.

I really can’t comprehend how and why people are fooled by this crap. Forget it, too complicated. Don’t brake your neurons on something that is just a palm reading science. Quite simple, if you thin somehow market will do something just wait for the propper moment to get in and if it’s not doing as expected just close the order and move on, tomorrow is another day and you can try again.

I agree and sort of disagree at the same time because if it works for them great if not move on in the end your base odds are 50/50 having multiple rules or strategies that agree with one another may be your edge or odd enhancer that potentially gives you a 51 or greater percentage odds that the trade your going into will be a winner, not always a runner, but a winner in general scalp or swing.

Indeed it is not, it is an art form.