Swing High and Swing Low
A swing high is a peak with lower highs on both sides; a swing low is a trough with higher lows on both sides. Together they map a market's structure.
Every chart zig-zags. The tops and bottoms of those zig-zags — swing highs and swing lows — are the reference points traders use to see the trend, draw levels and decide where a trade is wrong.
- Category
- Price Action
- Reading time
- 4 min
- Also called
- Swing points, Pivot highs and lows, Swing high
- Updated
Swing points in plain words
A swing high is a peak that rises above the highs around it.1 A swing low is a trough lower than the lows on either side.1
Swing highs often act like ceilings, or resistance.1 Swing lows often act like safety nets, or support.1
Traders follow swing points to judge the direction of the Trend.2
How to find swing points, step by step
Choose a timeframe
Pick your chart; traders monitor swings to identify trend direction.2
Find a peak
Look for a high that is above the highs around it.1
Find a trough
Look for a low below the lows on both sides.1
Filter small moves
Ignore tiny wiggles; tools such as ZigZag filter out smaller price movements.3
Set a threshold
ZigZag traditionally uses a 5% move, though the threshold can be changed.3
Use them for risk
Use swing points to decide entries, exits and stop-loss placement.1
Worked examples
Example 1 — Spotting a swing high
Swing high at 130Daily highs: 126, 128, 130, 127, 125.
| Middle high | 130 |
| Neighbours | 128 and 127 (both lower) |
130 is a peak above the highs around it, so it is a swing high and may act as resistance.1
Example 2 — Stop below a swing low
Risk = $540You buy at $52 after a swing low at $49.50. Stop goes at $49.30.
| Risk per share | $52 − $49.30 = $2.70 |
| Position | 200 shares |
| Total risk | $540 |
Swing points help decide where to place stop-loss orders.1 Here the stop sits just under the swing low.
Example 3 — 5% filter
No new swing lowPrice moves from a high of $100 down to $97, then up to $103.
| Drop size | 3% (below 5%) |
| Counted as swing? | No |
With the traditional 5% threshold, a 3% dip is filtered out as a smaller price movement.3
Swing high vs swing low
| Aspect | Swing high | Swing low |
|---|---|---|
| Shape | Peak | Trough |
| Neighbours | Lower highs on both sides | Higher lows on both sides |
| Often acts as | Resistance | Support |
| Stop use | Above it for shorts | Below it for longs |
How traders use swing points
Trend reading
Comparing swings to label higher highs and lower lows.
Levels
Drawing Support and Resistance from them.
Stops
Placing a Stop Loss beyond the latest swing.
Tools
Anchoring Fibonacci Retracement and Extension retracements from swing to swing.
Advantages and disadvantages
Advantages
- Simple and visible on any chart.
- Give natural stop and target levels.
- Form the base of trend analysis.
- Work on every timeframe.
Disadvantages
- A swing is confirmed only after later bars.
- Which swings count is subjective.
- Obvious swing levels attract many stops.
- Choppy markets produce many minor swings.
Going deeper
Read as far as you need. Each level builds on the one before it.
Peaks and troughs
Beginner
A swing high is a peak above its neighbours; a swing low is a trough below them.1
Swings and trend
Intermediate
Filtering noise
Advanced
A percentage filter like ZigZag ignores smaller moves, with 5% a common default.3 The threshold changes which swings appear, so fix it before testing a rule.
Common mistakes
Calling it too early
Marking a swing before later bars confirm it.
Stop on the exact level
Placing the stop right at the swing price.
Mixing timeframes
Using minor intraday swings for a daily trade.
Too many swings
Labelling every small bar as a swing point.
Check your understanding
Test yourself before moving on. Each answer comes with an explanation.
Key points to remember
- Swing high = peak above neighbouring highs.
- Swing low = trough below neighbouring lows.
- They often act as resistance and support.
- They anchor stops and trend labels.
- Filter minor moves for cleaner swings.
Frequently asked questions
How many bars confirm a swing?
Are swing highs always resistance?
Is a swing high the same as a pivot high?
Further learning
- Trend
What swing sequences reveal.
- Support and Resistance
Levels built on swings.
- Fibonacci Retracement and Extension
Retracements drawn between swings.
- Swing Trading
A style built around swings.
Sources
This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.
- IG. Swing Highs: What They Are and How to Trade Them (opens in a new tab) Checked .
- CMC Markets. Price Action Trading: An Advanced Guide (opens in a new tab) Checked .
- StockCharts ChartSchool. ZigZag (opens in a new tab) Checked .
Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. We are not affiliated with any publisher linked above. Last reviewed . Report an error or request a source credit.