Identifying Swing High & Swing Low the ICT Way

Most traders draw tops and bottoms based on subjective feelings. In ICT, Michael J. Huddleston introduces the extremely strict 3-candle rule to eliminate ambiguity when determining swing points.

1. Swing High (Swing High)

A valid Swing High is a cluster of at least 3 candles meet the conditions:

• The candle in the middle must be present Highest High.
• The candle on the left and the candle on the right have lower highs than the high of the middle candle.

2. Swing Low (Swing Low)

On the contrary, a valid Swing Low is a cluster of 3 candles in which:

• The candle in the middle must be present Lowest Low.
• The two candles on either side have a higher bottom than the bottom of the middle candle.