Swing High
Technical AnalysisA swing high is a bar whose high is above the highs of the bars on either side of it. A common rule needs 2 lower highs on each side, so you can confirm a swing high only after 2 more bars have closed. Some traders use 3 or 5 bars on each side to mark fewer, larger swings. In an uptrend, each swing high is above the one before it (higher highs), while a downtrend makes lower highs. A close above the last swing high is a common breakout trigger, and on a short trade the most recent swing high is a common place for the stop loss.
Read the full guide: Swing Highs and Swing Lows: How to Identify Them on a Chart
Related Terms
Swing Low
A swing low is a bar whose low is below the lows of the bars on either side of it.
Uptrend
A series of higher highs and higher lows in price.
Downtrend
A series of lower highs and lower lows in price.
Resistance
A price level where selling pressure tends to overcome buying pressure, causing the price to stall or reverse downward.
Stop-Loss
An order to exit a position when the price moves against you to a predetermined level.
Trendline
A diagonal line connecting two or more swing highs (downtrend) or swing lows (uptrend).