We build the rule ourselves instead of memorising it.
Goal: Detect where the direction of price flipped.
Observation: A direction flip means the value was rising into candle i and falling out of it (for a high). So i must beat every candle immediately left AND right.
Left side check:Hi>Hi−1,Hi−2,…,Hi−n → price was climbing up to i.
Right side check:Hi>Hi+1,Hi+2,…,Hi+n → price fell away after i.
If both hold → i is confirmed a swing high. (Swing low = mirror image with lows and <.)
A candle whose high exceeds the highs of n candles on both its left and right.
What defines a swing low with strength n?
A candle whose low is below the lows of n candles on both its left and right.
Why is a swing high confirmed late in real time?
You need n candles to close to the right before both-side condition can be verified — a lag of n candles.
What swing pattern defines an uptrend?
Higher Highs and Higher Lows (HH + HL).
What swing pattern defines a downtrend?
Lower Highs and Lower Lows (LH + LL).
What is a Break of Structure (BoS)?
Price closing beyond the most recent swing in the trend direction — signals continuation.
What is a Change of Character (CHoCH)?
The first swing that breaks the existing pattern (e.g. a Lower Low in an uptrend) — hints at reversal.
How does swing strength n affect sensitivity?
Small n = many minor/noisy swings; large n = only major structural turns.
Where should support and resistance be drawn?
On prior swing lows (support) and prior swing highs (resistance), not arbitrary prices.
Why use strict inequality (> not ≥) for swing detection?
A flat/equal candle isn't a true directional turn; strict inequality avoids labelling pullbacks and plateaus as swings.
Recall Feynman: explain to a 12-year-old
Imagine you're drawing hills and valleys on paper by dotting where price stops going up and starts coming down (a hilltop) or stops going down and starts going up (a valley bottom). A hilltop is only a real hilltop if the ground is lower on both sides of it. Same for a valley. If each new hilltop and each new valley is higher than the last, you're walking uphill — that's an uptrend. The very first time a valley shows up lower than the one before, the hill is starting to slope back down. That's your early warning.
Dekho, market kabhi seedhi line mein nahi chalta — hamesha zig-zag karta hai. Har zig-zag ke top pe ek swing high banta hai (jahan buyers thak gaye aur price neeche mud gaya), aur har bottom pe swing low banta hai (jahan sellers thak gaye aur price upar mud gaya). Rule simple hai: ek candle swing high tab hai jab uska high apne left aur right ke n candles ke highs se zyada ho. Swing low ulta — low sabse neeche ho dono sides pe. Yeh n ko strength kehte hain: chhota n matlab bahut saare chhote noisy swings, bada n matlab sirf bade important turns.
Yeh cheez itni important kyun hai? Kyunki trend inhi swings se banta hai. Agar swing highs aur swing lows dono lagataar upar ja rahe hain (HH aur HL) to uptrend hai — seedhi si baat, buyers dabdaba bana rahe hain. Agar dono neeche ja rahe hain (LH aur LL) to downtrend. Support aur resistance bhi inhi purane swing points pe draw hote hain, random price pe nahi.
Ek important baat yaad rakho — real time mein swing high turant confirm nahi hota. Uske right side ke n candles close hone ke baad hi pata chalta hai. Isiliye thoda lag hota hai; isse respect karo, warna aap aisa peak pakad loge jise price straight tod dega. Aur jab pehli baar uptrend mein ek Lower Low ban jaye (pichhle swing low se neeche) — usse CHoCH kehte hain, matlab trend palatne ka pehla warning. Bas itna samajh lo to price action ka poora skeleton aapke haath mein aa jayega.
Test yourself — Support, Resistance & Price Action
