A hands-on options curriculum covering real trading concepts. Read the lessons, work through examples, and test your knowledge.
OVERALL ACADEMY PROGRESS
Free Lesson
Every lesson is free to read. Subscribe to add Signal Desk, progress tracking, PDF downloads and the lesson tutor.
Lesson 2: 9.1: Swing Highs & Swing Lows
Master the precise definition of structural swing points and how to identify valid pivots on any timeframe.
1. Defining a True Swing Point
To establish a rule-based approach, we cannot rely on subjective visual assessments. A true swing point must meet a strict geometric criteria based on surrounding price action.
• Swing High: A candle high that is flanked by at least two candles on the left and two candles on the right with lower highs.
• Swing Low: A candle low that is flanked by at least two candles on the left and two candles on the right with higher lows.
★ Drawing Rule: Always use the candle wicks when identifying swing highs and lows, as they represent the absolute limits of price delivery.
2. Identifying Valid Pivots
Not all peaks and valleys on a chart are structural pivots. True structural pivots are formed when price reverses enough to create a clear expansion away from the pivot point.
If price merely moves sideways or forms small, tightly clustered candles, it represents minor sub-structure or consolidation rather than a major swing point.
Click to enlargeKNOWLEDGE RECONNAISSANCE
What is the strict structural definition of a valid Swing High?
More lessons in this module
- 9.0: Introduction to Market Structure
- 9.2: Break of Structure (BOS)
- 9.3: Change of Character (CHoCH)
- 9.4: Understanding Market Liquidity Pools
- 9.5: Internal vs External Structure
- 9.6: Premium vs. Discount Pricing
- 9.7: Fair Value Gaps (FVG) & Imbalances
- 9.8: Putting It Together: The Market Structure Blueprint
Signal Desk is where you practice this on real stocks: real option chains (about 15 minutes delayed), the Trade Check and a paper-trading account that risks no real money. Join to add it, your progress tracking and PDF downloads.