So i am demoing on a MT4 platform and in the computer age it is very easy to use Fibonacci as oppossed to manually charting this all out by hand, right? Well i am still confused. According to BabyPips when identifying Fib retracement levels you identify the swing high and swing lows:
A Swing High is a candlestick with at least two lower highs on both the left and right of itself.
A Swing Low is a candlestick with at least two higher lows on both the left and right of itself.
This really makes no sense at all. What constitutes a lower high and a higher low? So far i have just been using 1 hour charts and choosing the lowest shadow of a candlestick on the chart as a start point and the highest shadow of a candlestick as the end point and that is my fibonacci. Is this correct? Or is there a better explanation of swing highs and swing lows candlesticks somewhere?