What it means
A common rule uses two candles on each side. Swing points are the skeleton every structure method is built on.
In practice
Swing points turn a messy chart into a simple zigzag that can be read. They mark where trends are measured, where stops gather and where structure breaks or holds.
Traders mark the obvious ones first. Liquidity rests beyond them, and a break of one is what defines a break of structure or a change of character.
What to watch for
A swing is only confirmed after the candles to its right have formed, so the newest one on the chart is always provisional. A looser rule produces more swing points and more noise.
Related terms
3 terms- Higher high and higher lowEach peak above the last and each dip above the last: the definition of an uptrend.
- Break of structureBOSA close beyond the last swing point in the direction of the trend, confirming the trend continues.
- LiquidityIn SMC, the pools of resting orders, especially stop-losses, that sit beyond obvious highs and lows.