Lesson 0.1Liquidity Lab mini-noteRequired

Learn / ICT 2022 Model

Swing High / Swing Low

Define basic structure points before users study liquidity.

Swing High

The middle candle makes a higher high than the candle on the left and the candle on the right.

LeftMiddleRightSwing HighLeft high < Middle high > Right high

Swing Low

The middle candle makes a lower low than the candle on the left and the candle on the right.

LeftMiddleRightSwing LowLeft low > Middle low < Right low

Notes

A Swing High is a local high where price formed a peak.

A Swing Low is a local low where price formed a valley.

Simple definition: Swing High = the middle high is higher than the highs around it. Swing Low = the middle low is lower than the lows around it.

Swing High rule card: Left high < Middle high > Right high.

Swing Low rule card: Left low > Middle low < Right low.

Practice idea

Mark the structure

Mark the most obvious swing high.
Mark the most obvious swing low.
Which side is buy-side liquidity?
Which side is sell-side liquidity?
Practice drill

Key rules

For a swing high, the candle on the left and the candle on the right should have lower highs than the middle candle.

For a swing low, the candle on the left and the candle on the right should have higher lows than the middle candle.

Swing highs and swing lows become important reference points for liquidity.

Warnings

Do not mark every small candle high or low as important.

Do not ignore timeframe context.

Do not treat a swing point alone as an entry signal.

Finished this lesson?

Continue the path.

Continue to the next Learn lesson, practice the matching drill when one exists, then finish with Practice and Guided Replay.