The highs and lows of a swing are an excellent help when it comes to the success in the forex market. A trader should keep this in mind – It is impossible to put a stop loss and target price correctly without identifying the swings. So what exactly is swing high and low?
To understand this, we need first to understand the highs and lows. A high of the price of a currency pair is the highest level which the price touched, and a low in the currency pair is the lowest level which the price touched in a given period.
Now the market keeps on moving up and down, and that is why it keeps on making highs and lows. A Swing High, Swing Low abbreviated as SHSL can be applied where there are multiple candle bars whether in an uptrend, downtrend or sideways movement. It is called swing as the price keeps on making trends by swinging in the opposite directions or sideways.
A swing high is the highest price touched by the currency pair with two low prices at the left and right-hand side. A swing low is the lowest price touched by the currency pair with two higher prices on the left and the right side.