Hello, at the moment I work on the babypips course.
In the section Fibonacci Trading I have learned:
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.
In the next lesson ( How to Use Fibonacci Retracement to Enter a Trade ) I talk about the first graphic. The Uptrend graphic.
A Swing High is a candlestick with at least two lower highs on both the left and right of itself.
Can someone please show me where I find the two lower highes on both the left and right of it self.
I guess I dont understand the sentence.
I don’t know if you will get me without a photo illustration, notwithstanding, I will give it a try. When price break resistance and start trending up, swing high occurs at the resistance breaking point. Now, as price keep moving up, it might get to a point it will retrace it’s step back before resuming it’s uptrend. Assuming it does this retracement twice after a bit of up movement separating these retraces, it will from two humps, one being higher than the other. Those humps are the lower highs.
Its a good question - not because this is a complex issue but because its a very important issue that will repay your efforts to fully absorb what a swing high or low is, and I’m not sure the definition as you have quoted it is comprehensive.
See the daily chart for EUR/USD. The bar for 21/10 had a higher high than the two preceding days’ bars. The bars for 22/10 and 23/10 had lower highs than the high of the 21st, so 21/10 is a swing high.
