An Introduction to What Swing High and Swing Is In Crypto Trading

Trading is a good profession that can turn your life around for good if you know how to analyze the market. When it comes to anything that has to do with trading the financial markets be it crypto or forex swing high and swing low is important for you to identify which in this post, we have discussed.

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Swing High and Swing Low

When you hear about swing high and swing low, you should know that it is a point where a piece of price action has many bars or candlesticks that are grouped in one place.

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Since they are grouped, it means they are considered to be moving in one direction. It is called swing since it's one piece of the price action of an asset that is moving in the same direction. Now, let's discuss them separately.

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Swing High

Swing High It is called swing high because it is the highest price movement of the asset at the moment. Also, a swing high means the peak price that an asset has reached after a higher movement before the price then falls back lower.

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The above screenshot is an example of a swing high in which the price of the asset moves higher into the swing high. As a trader, swing high is the perfect way for you to look out for reversal in the market.

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Also, from the screenshot, you will see that the price of the underlying asset has made a series of swing highs many times which when you see the market is making higher highs and higher lows you should know the asset is trading in an uptrend.

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Swing Low

Swing Low It is called swing low because it is the lowest price movement of the asset at the time you are analyzing the market. A swing low is the opposite of a swing high which by what we have discussed about swing high, you should refer to the opposite to swing low.

A swing low means the price of the asset you are trading or analyzing will swing into a lower point before the price can move higher creating a swing low.

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By looking at the chart above, you will see that the price of the underlying asset moved lower within an uptrend into a swing low. The swing low is where traders look out for a support level as it is where an engulfing candle is usually formed before continuing on a higher high.

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Importance of Swing High and Swing Low

Understanding swings high and swing low would always put you at a profit as both are the two ways to easily identify the levels of support and resistance in the market.

By understanding the strategy of swing high and swing low, you will be able to know how to find an area where the price of the asset you are analyzing will swing lower before you can either enter the market or wait for the range to finish.

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Conclusion

_{Today we have learned about what swing high and swing low are which is a good way of identifying support and resistance levels. Note, that this post, is not investment advice, but serves as educational content.}