Defining Valid Swing Points

Market structure begins with swing points. A swing high is a peak with lower highs on both sides (on your chosen timeframe). A swing low is a trough with higher lows on both sides. Without agreed swings, HH/HL/LH/LL labels are meaningless.

Manual traders use consistent pivot rules: 3-candle pivot (center candle highest/lowest), 5-candle fractal, or percentage reversal threshold (e.g., 0.5% move off extreme). Pick one method per timeframe and stick to it for months.

Not every wick is a swing. In fast markets, require the reversal to hold for at least one full additional candle close beyond the pivot to confirm — reduces false swings on noise.

Swing magnitude matters: a 2-tick wiggle on ES 1-minute is not the same as a daily swing low. Scale your minimum swing size to average true range of the timeframe.

Document swings on chart with small labels (SH1, SL1) sequentially — clarity when explaining bias to yourself or mentor.