Swing Low
Technical AnalysisA swing low is a bar whose low is below the lows of the bars on either side of it. A common rule needs 2 higher lows on each side, so you can confirm a swing low 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 low is above the one before it (higher lows), while a downtrend makes lower lows. A close below the last swing low in an uptrend is often the first sign the trend has ended, and on a long trade the most recent swing low 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 High
A swing high is a bar whose high is above the highs 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.
Support
A price level where buying pressure tends to overcome selling pressure, causing the price to stall or bounce upward.
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).