TRADINGSIM DAY TRADING BLOG

Swing High – Peak Price Movement

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Swing High Definition

A swing high is a peak in price movement for an asset. A swing high can occur on any trading time frame. Swing highs are based on the number of data points in a series. So, if you are looking back over the past 3 bars, you will want to find the highest price peak in the chart pattern for that series. In order to find important price swings, you will want the look back series to be on the order of 10-20 bars. Swing highs can be used to find critical price junctures and are often an acceleration point for price movement. A swing high is also a good place to enter stop loss orders for short positions.

Swing High Chart Example

Swing High

Alton Hill

Alton Hill

I am a co-founder of Tradingsim.com and an IT professional that specializes in large scale Systems Integration projects. I have actively traded the markets since 2000 and believe that true trading mastery comes from practice. When I'm not working on a new trading strategy, I enjoy spending time with my wife and kids.
Alton Hill
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