Lessons
Chart school · Lesson 6

How to mark highs and lows

Every chart has hundreds of small wiggles. Marking the right ones is the first real skill.

Swing high2 lower highs2 lower highs
A swing high is a candle whose high is above the highs of at least 2 candles on each side. A swing low is the opposite. It is confirmed only after the 2 candles on the right have closed.Teaching diagram, not real market data
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Small grey dots are minor swings: every wiggle the rule finds. The labelled points are major swings: the ones that created a new high or low and shaped the trend. Structure is built from major swings only.Teaching diagram, not real market data
Screenshot needed, not added yet
Marked swings on a real chart
Your own TradingView screenshot of XAUUSD on the 4-hour chart, with the major swings and yesterday's high and low marked.

Rules that keep it simple

  1. Start on a higher timeframe (daily or 4-hour). Mark the major swings there first.
  2. A swing low counts as major only if price then made a new high from it (in an uptrend). The low that started the move to a new high is the one to protect.
  3. Mark at the wick (the true high or low), but judge a break by the candle close.
  4. Do not mark every wiggle. If you have more than 6–8 marks on one screen, you are marking minor swings.
  5. Also mark: yesterday's high and low, and the Asian session high and low. Everybody watches them.
Quick check

A swing high needs…

You judge a break of a level by…