Qazi Forex Tips
In this lecture
- What swing highs and swing lows are
- Major vs minor swing levels
- Swing trading explained
- Using swings in your analysis
Lesson notes
The definition
A swing high is a high with lower highs on both sides; a swing low is a low with higher lows on both sides. Many traders use a simple rule: at least two candles on each side.
Major vs minor swings
A major swing caused a clear move and is visible on the higher timeframe. A minor swing is a small pause inside a move. Draw structure, trendlines and levels from major swings; minor swings are for fine-tuning entries on lower timeframes.
Swing trading
Swing trading holds trades longer than a day trade but shorter than an investment, often for days. Swing traders buy near major swing lows in uptrends and sell near major swing highs in downtrends.
Khulasa (Roman Urdu / Hindi)
- Swing high: dono taraf neeche highs. Swing low: dono taraf oonche lows.
- Major swing se move bana, higher timeframe par nazar aata hai.
- Trendline aur structure major swings se.
- Swing trading: trade kuch din tak.
Questions
What is a swing high in trading?
A high with lower highs on both sides, marking a point where price turned down.
How many candles confirm a swing high or low?
A common rule is two candles on each side; some traders use three or more for major swings.
What is the difference between a major and a minor swing?
A major swing caused a clear move and shows on higher timeframes; a minor swing is a small pause inside a move.
What is swing trading?
A style that holds trades for days to catch one swing of the market, between day trading and long-term investing.
Which timeframe is best for swing trading?
H4 and Daily for analysis, H1 for entries.
Why are swing points important?
Trendlines, market structure, Fibonacci and support and resistance are all drawn from swing points.
Related lessons
Market structure explained: the key to direction and entriesPrice Action Basics
How to draw trendlines correctly: swings and rulesPrice Action Basics
Support and Resistance: how to draw it, and why it failsEducation only, not financial advice. Trading forex, Gold and CFDs carries a high risk of loss. Examples are for learning; test any method on a demo or in a simulator before using real money.