High-Low Swinging

This is a very simple early entry Swing Trading system.
The only indicator used is the Chaos Fractal.


  1. Trades on the 30M to H4, Daily, Weekly and Monthly Charts.
  2. Lower Risk Entries.
  3. Higher Reward.
  4. Trades last typically 1 day to 1 week.
  5. Fibs are used to identify take profit zones.

[B]Long Setups [/B]
There are two types:

  1. Pivot Swing Low Buys
  2. High of a Higher-Low Candle

[I]Pivot Swing Low[/I]

Where the market, after a drop, creates a low, then a lower low then a higher low.

The high of the pivot low candle becomes support, when broken, which we buy.

[I]High of a Higher-Low Candle[/I]

When a fractal low is created after a drop, followed buy a higher fractal low, the high of the higher-low candle becomes support, when broken, which we buy.

[B]Short Setups[/B]
There are two types:

  1. Pivot Swing High Sells
  2. Low of a Lower-High Candle

[I]Pivot Swing High Sell[/I]

Where the market, after a climb, creates a high, then a higher high then a lower high.

The low of the pivot high candle becomes resistance which we sell.

[I]Low of a Lower-High Candle[/I]

When a fractal high is created after a climb, followed buy a lower fractal high, the low of the lower-high candle becomes resistance, when broken, which we sell.

[B]Profit Targets[/B]

For buying markets, fib the high to the low of the last swing.
For selling markets, fib the low to the high of the last swing.


[I][B]Please note that you will at times need to wait for a swing to develop in the favor of the setup before you are able to fib.[/B][/I]

[B]When to Take Profit and When to Let-It-Run[/B]

If you are in a buying market and lower highs begin to be created, followed by at least one lower low, exit or lock in profit on the test of the last high.
Similarly, if you are in a selling market and higher highs begin to be made followed by at least one higher low, exit or lock in profit on the test of the last low.

Let it Run when the trend is up and you are still getting BUY setups off higher lows or when the trend is down and you are still getting SELL setups off lower highs.


[B]Please see post #157[/B] ,[B]post #158and post #159 for examples*[/B]

So far we have only been using the support or resistance of PVSL/HL, PVSH/LH candles for entry. However, of importance is the use of the fib levels between 0% and 100% for entries. So let’s see how it works.
The 89% and 11% act as support and resistance Levels of a swing and give very low risk entries, since an entry on the 89% means that your risk would be a little above the 100% or a little below the 0%.
For the purposes of this method we will use the 11% for entries and target the 89% through to 377% for take profit. This is best applied on the 30M H1, H4 and bigger timeframes.


  1. The market is selling and creates a BUY candlestick pattern.
  2. Immediately fib from the high of the previous high to the current low created at the BUY candlestick pattern (this will be a swing)
  3. Enter on a retrace to the 11%
  4. Place stop 8-10 pips below the 0%
  5. Breakeven once the 55% is hit
  6. TP 1=89%, TP2=100%, TP3=144%, TP4=210%, TP5=233%, TP6=377%
  7. Repeat these steps for every swing.


  1. The market is buying and creates a SELL candlestick pattern.
  2. Immediately fib from the of the previous low to the current high created at the SELL candlestick pattern (this will be a swing)
  3. Enter on a retrace to the 11%
  4. Place stop 8-10 pips above the 11%
  5. Breakeven once the 55% is hit
  6. TP 1=89%, TP2=100%, TP3=144%, TP4=210%, TP5=233%, TP6=377%
  7. Repeat these steps for every swing.

[B]Key Notes:

  1. The 89% and 100% are the most reactive levels.
  2. Why use PVSL/PVSH/LH/HL? Because sometimes the candle pattern created closes too far away from the 11% to facilitate retracement.
  3. Once there is a breaking of or closing above the 55%, move your stop from breakeven to about 25-30%. Other adjustments are at the trader’s discretion
  4. The most successful trades beyond 100% are in favor of the trend
  5.  The smaller the swing the more targets will be hit and vice versa.



So far we have looked at selling Pivot Swing Highs (PVSH) in down trends and buying Pivot Swing Lows (PVSL) in up trends.
What we will now be looking at is:

  • Using PVSLs and PVSHs to spot and catch reversals.
  • Using Old PVSHs to spot entries in a uptrend and Old PVSLs to spot entries in a downtrend.

[B]Spotting Reversals[/B]
When the market has peaked at buying, this is usually indicated by a number of BEARISH candlestick patterns (which form PVSHs) and sometimes no significantly higher high. Additionally in the midst of these Bearish patterns, you will often notice a PVSL pattern, which is the bulls final attempt to force buying continuation. However buying fails, and then the high/open/close of that PVSL becomes an extremely strong resistance point that triggers selling. The reverse applies for when selling troughs (bottoms).

[B]See Examples[/B]

[B]Using Old PVSHs and PVSLs for Entry[/B]
When the market is trending down and creating PVSHs, these levels create significant resistance levels to allow selling to continue. Similarly, when the market is trending upwards and creating PVSLs, these levels create significant support to allow buying to continue.
When the Selling ends or pauses, buyers use the PVSH resistance levels as support to facilitate buying. Conversely, when buying ends or pauses, sellers use the PVSL support as resistance to facilitate selling.

[B]See Examples[/B]

[B]Please also read this post on the “MARKET’S GENERAL REACTION TO SUPPORT & RESISTANCE”[/B]

[B]Let’s Trade!!![/B]

GBP/USD Example - H1 Chart July 15-20th 2010

Having found our entry point, we fib the last swing from the low of 1.5390 to the high of 1.5471 to identify targets.

All TP levels are reached in this example for +225 pips.

EUR/USD Example - 30M Chart Nov 25-26th 2010

Having found our entry point, we fib the low to high of the last swing, that is 1.3344 to 1.3386.

All TP levels are reached in this example for +142pips

GPB/USD Example - H1 Chart July 30th to August 3rd 2010

Having found our entry point, we fib the high to low of the last swing, 1.5719 to 1.5551, to identify targets

Targets 1-3 are achieved for +362pips

GBP/USD Example - Jan 30-31 2011

Having found our entry point, we fib the low to the high of the last swing, in favor of the setup to identify targets.

All targets are achieved in this example for +186pips.

[B]GBP/USD 30M[/B]

Buy level needs to be watched closely due to current weakness of EURO.

Already triggered, but can still give entry on Market Open. Targets to be determined.


May trigger earlier at 131.85 support at 55% fib.



[B]GBP/USD H4 [/B]
We have both a higher low and pivot swing low setup on the H4 chart. For the higher low setup, the T1 takes us to 1.6476. The Pivot Swing low BUY setup will only trigger with a solid close above 1.6154 followed by a retrace to that level.


[B]Some BIGGER PICTURE considerations…[/B]

[B]GBP/USD Monthly[/B]

Showing tremendous Bullish potential at 1.5940 to 1.6000 should we pullback to these levels. Clearer picture will be painted by the upcoming week.


[B]EUR/USD Monthly[/B]

Current Pivot Swing low with high at 1.3760 is now a strong area of resistance that could trigger very strong movement with failure or break. We will monitor this level in the upcoming weeks.


[B]GBP/JPY Monthly[/B]

The picture on this pair looks particularly interesting. We have a higher low and pivot swing low setup and are currently sitting just beneath the resistance(high) of the pivot swing low candle at 133.10-133.20. Should we get a close above this level, this will be a nice area to go long with very long term T1 target being 182.30. As the weeks progress the interim targets will be painted more clearly. This is a pair to watch this week.

[B]GBP/USD 30M LONG[/B] Triggered at 1.6095. Stop @ 1.6050, TP1 = 1.6042, TP2 = 1.6191, TP3 = 1.6208, TP4 = 1.6229, TP5 = 1.6315

[B]EUR/USD H1 LONG[/B] Triggered at 1.3567. Stop @ 1.3545, TP1 = 1.3621, TP2 = 1.3657, TP3 = 1.3672, TP4 = 1.3688, TP5 = 1.3752.

Nice system bank I actually use this ame exact method with the ichimoku method along with a rsi for ob/os conditions.
ill follow along, I see you use vt trader try mb trading I’m very happy with them and the mt4 platform because cmsfx customer service is unfortunately lacking in efficiency as well mb has much better spreads!

Good Morning and Thanks raging bull. I am not familiar with the ichimoku, but definitely using a filter of ob/os conditions increases the probability of the trades. Looking forward to you sharing. I only use VT Trader for analysis, my broker is FXCM, yes I know very well about their customer service. Had a live account with them, but I love their charts.

EUR/USD Hit TP1 for +55 pips.

GBP/USD Hit TPs 1 & 2 for +89 pips.

[B]GBP/USD 30M[/B] - Buy above 1.6125, High of Pivot Swing Low Candle, Once there is close above. Also we have a higher low created at 1.6095.
TP1=1.6230, TP2=1.6315. Will update the others later today.


Second LONG entry triggered at 1.6095. 1.6120-25 setup now on the watch for a BUY with close above this area. TP3 = 1.6400

Recently Triggered Setup

[B]EUR/USD 30M[/B] Long at High of Pivot Swing Low Candle. Awaiting swing to determine targets.


Updated Chart with developing Swing and Projected Targets. Resistance at 1.3586 H4 Pivot Swing Low.


T1 Hit for +70 pips, awaiting confirmation to hold for T2.

I added to my short position on the 1hr eur/usd from 1.36105 to 1.35819 my stop is 1.3640 and my tp is 1.3540 for both positions which was already hit on my first position still holding half.

conditions for my short
price below ichi clouds
ts/tk ma have crossed for possible short positions
chikou span (lagging 26 periods) average is below that time periods price and moving down
consistent lower highs being made
rsi in the low 50 and crossing over

Hi ranging, good trade, I see shorts on EU ending at 1.3480-1.3500 for movement towards 1.3770. Beyond we may be going for 1.4000 area based on the fib of the first quarter of this year. Additionally, we are now using the low of January 31 (1.3569) as support, suggesting that we could be headed for 1.3770, 1.3800, 1.4020. So right now I am preparing to build on my current long if more LONG setups are presented. Watch 1.3569.

T2 & T3 Hit, total +120. Holding for T4 & T5 should 1.3600 hold.

GBP/USD H1 still setting up around 1.6120 area for long. Lets see how the hour closes. Still holding long from 1.6095. Strong support being build at January’s High, 1.6074. Preferred target for the week T4-1.6426.

Revised Entry point…

EUR/USD H1 - Adding to Longs only above 1.3620.

EUR/USD on its way to our T4 & T5 targets. Will hold to 1.3800 or higher if 1.3770 is broken.

GBP/USD dipped a bit lower than expected to find stronger support on failed test of H1 Pivot swing low of January 31st 2011. Still long for 1.6300-6400. Once price begins trading above current resistance levels will continue adding to long positions.