BeginnerLesson 2 of 4 · 8 min
Trends, Swings and Structure
Define an uptrend and downtrend objectively using swing highs and swing lows.
Illustrative chart · Higher highs, higher lows
Swings are the building blocks
A swing high is a peak with lower highs on both sides; a swing low is a trough with higher lows on both sides. Joining them turns a noisy chart into a simple zig-zag.
When each new peak and trough is above the last, the market is trending up. When each is below the last, it is trending down. Anything else is a range.
Choosing your timeframe
Structure exists on every timeframe, and they often disagree. Decide which timeframe defines your bias and which one you use for detail, and keep that choice consistent.
Key takeaways
- Uptrend = HH + HL; downtrend = LH + LL.
- Define the trend on one chosen timeframe.
- A broken higher low is a warning, not a verdict.
Charts are illustrative examples, not real market data. This content is for educational purposes only and is not financial advice.