Market Structure/
Swing High & Swing Low
TL;DR
Swing points act as the gravitational nodes of a market. They define the 'Dealing Range' and mathematically dictate where institutional liquidity naturally clusters.
How It Works
- 1
A 'Swing High' is mathematically a candle high surrounded by two lower highs on the left and right (a 3-bar or 5-bar fractal).
- 2
A 'Swing Low' is a candle low surrounded by two higher lows on the left and right.
- 3
In an uptrend, Swing Lows are 'protected' (meaning institutions defend them), while Swing Highs are 'targeted' (meaning they are drawn to them as liquidity).
- 4
The most recent valid Swing High and Swing Low form the boundaries of the current Dealing Range.
Before evaluating any POI, LiquidMind identifies the precise Dealing Range utilizing algorithmic swing formations. The system ignores minor intraday noise and focuses on valid HTF Swing nodes. Any Equal Lows (EQL) or Equal Highs (EQH) are essentially failed attempts to break these structural nodes.