Forex glossary
Swing High
A swing high is a local maximum selected by comparison with candles or moves on either side. A method requiring right-hand candles confirms the pivot only after they have formed. Observation count, equal-high tolerance and timeframe affect which peaks are selected.
Illustrative example
How does it work in practice?
Assume five consecutive candle highs are 100, 102, 105, 103 and 101. A two-bars-on-each-side rule confirms 105 as a swing high only after the fifth candle has closed.
A case to work through
A label plotted on an earlier bar
Hypothetically, a high candidate occurs on bar 30 and needs three completed right-hand bars.
- Comparisons become complete only after bar 33 closes.
- A label plotted on 30 does not mean confirmation was known on 30.
What follows? Allow pivot use in a backtest only from confirmation onward.
Example boundary: A later high violating the rule can prevent confirmation.
A useful distinction
Swing High / Swing Low
Swing high selects a local maximum; swing low selects a local minimum with the same confirmation-timing issue.
Check your understanding
Locate swing-high availability without using future data.
Show the answer and explanation
After bar 14 closes
Bars 13 and 14 are required.
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Related terms
Sources and documentation
- TradingView – Pivot High/Low
Left/right observation comparisons and delayed pivot confirmation.
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