I have attached a Graphic that I hope will explain what you are asking in more detail. You should know; however, that you are probrally thinking too deeply about this and over complicating it for it is very simple. It is an important concept though, so it is important that you understand it.
In the graphic attached you will see a chart where I have circled all the swing highs in green and swing lows in red. You will see that there are many many many swing highs and swing lows. I have highlighted the inside of the circles in yellow that I consider important swing highs or swing lows. That can be rather subjective at times, but important because you will most likely be drawing Fibonacci levels from these areas.
If you have any more questions feel free to ask. I may not have time to present a full graphic display for each question but will do my best to help out.
Its really no problem at all. I am a right brained person, so it is much easier for me to communicate through graphics than it is through text.
Yes, once a Marine always a Marine. My end of active service was May of 2005. A part of me wanted to stay in, but having been recently married I decided to leave it for a nice and easy civilian life.
Good luck with your trading. Hang in there and give it the time. Remember that a doctor or a lawyer has to go to school for years before he start making a lot of money (not to mention the time to pay off his student loans.) Even if it takes you two or three years to become successful at Forex, you are WAY ahead of the curve!
Hi,
The candles illustrations at the bottom of the graphic, shouldn’t the the 2 candles to the left and right of the Swing Low say “higher low”, and the 2 candles on the left and right of the Swing High say “lower high”? fractal.bmp (655 KB)
I believe the labeling on your side candlesticks should be the other way around as top Shadows are Highs and Lower ones Lows. This concept was a bit unclear for me but your graph did help - just some confusion w/ the labeling - so thank you for that.
A small refresher on Candlestick anatomy from the babypips course:
For people whom the explanation still isn’t very clear, even after the chart illustrations:
Swing High:
A Swing High has 3 candlesticks with the middle candlestick having the longest top Shadow among the 3. The top Shadow is also called a High
Swing Low:
A Swing Low has 3 candlesticks with the middle candlestick having the longest Bottom Shadow among the 3. The bottom Shadow is also called a Low.
Still think it’s easy ? One question: is a higher high green candle only? And swing low red? It is one question cos if you give me the answer to one the other is common sense. Thanks