The question that comes in is Barry how do you determine how your highs and lows. I mean with this over here you can see it clearly the zigzag. But usually they do allow you to do it by points or percent or they might have some other options as well. This is ninja trader 7. I like to use percent because a few points. How I use it is more for support resistance support resistance levels. For example you know these little ones. These are not going to provide measures for resistance.

But these big ones are. Everybody see this is a Euro US dollar daily chart. So a lot of people are looking at this time frame and a lot of people are going to see that low end of that high and then that becomes a self-fulfilling prophecy and that causes people to behave in certain ways when the market approaches those levels the way they behave as they buy off those levels they sell off at those levels they take profit into those levels so much as show when example here with just take this first one and put a horizontal line on it OK.

So as you can see I actually have to change it quite a bit. The market came down to it here OK. Close enough. I mean. They are zones. On the other hand, when the price creates a rally by breaking the high and low price of the daily timeframe will indicate a significant market momentum. If you can avoid the range market, the high low based strategy can provide a reliable trading result.

If you can implement the trading strategy well as per the rule mentioned below, you can make a decent profit from it in any currency pair. In this image above, the price has made a new higher high once it breaks above the candle high in the market area.

However, there is some market condition where price moves to a range and violates the movement above or below the candle high. If you are trading the breakout of a daily candlestick that is larger than the earlier candlesticks, you might be caught by the mean reversion of the price.

In the forex market, it is often difficult to predict how long a trend could stay. The basic concept of making a good profit from the forex market is to buy from low and sell from high. Therefore, any bullish breakout from a significant support level in a daily timeframe would indicate a reliable daily breakout strategy compared to a trade setup from the middle of a trend.

This trading strategy is simple as you can make most of the trading decision a day before the movement is expected. The main of this trading strategy is to place two pending orders above or below the yesterday candle. We should consider the daily timeframe to determine the high and low prices. Later on, move to the lower timeframe usually H4 to enter the trade.

However, for new traders, it is recommended to stick to the daily timeframe. This trading strategy works well in all currency pairs, including EURUSD, GBPUSD, USDJPY, or AUDUSD. However, sticking to the major and minor currency pairs would provide a better trading result. Moreover, you should avoid exotic pairs as there is a risk of the false move by hitting the high or low and reverse back. In this trading strategy, the challenge is to avoid correction and choppy market.

In that case, you should read the price action to determine the possible movement by measuring the price momentum. Moreover, to get the maximum benefit from this trading strategy, follow strong money management rules. Save my name, email, and website in this browser for the next time I comment. About Us Advertise With Us Contact Us. Forex Academy.

The successful trading of Swing highs and lows Forex, futures and stocks is one of the foundational principles of becoming a profitable trader. But the DETAILS of how to identify swing highs and lows is rarely taught. Some traders use swing high and swing low in Fibonacci and that can be helpful, but the most accurate and precise method is to learn how to identify the swing high and swing low using candlesticks. Was this video on Swing highs and lows for Forex helpful to you?

Leave a message in the COMMENTS section at the bottom of this page. The question that comes in is Barry how do you determine how your highs and lows. I mean with this over here you can see it clearly the zigzag. But usually they do allow you to do it by points or percent or they might have some other options as well. This is ninja trader 7. I like to use percent because a few points. How I use it is more for support resistance support resistance levels.

For example you know these little ones. These are not going to provide measures for resistance. But these big ones are. Everybody see this is a Euro US dollar daily chart.

So a lot of people are looking at this time frame and a lot of people are going to see that low end of that high and then that becomes a self-fulfilling prophecy and that causes people to behave in certain ways when the market approaches those levels the way they behave as they buy off those levels they sell off at those levels they take profit into those levels so much as show when example here with just take this first one and put a horizontal line on it OK.

So as you can see I actually have to change it quite a bit. The market came down to it here OK. Close enough. I mean. They are zones. But notice what it did. It went down. It provided support came back up and you can see the line there breaks through it. This time comes back. Now this is of course the technique known as Rio or support here becomes resistance and goes back down.

So that is primarily how I like to use it so we can even look over here and you know this is within the zone of that high. So this high provided resistance for this move up. Just send me an email at support topdogtrading. What did you think of this tutorial on Swing highs and lows Forex? Enter your answer in the COMMENTS section at the bottom of this page. Just fill out the yellow form at the top of the sidebar o n the right.

It went down. Please enter your comment! Just send me an email at support topdogtrading. For example you know these little ones. So a lot of people are looking at this time frame and a lot of people are going to see that low end of that high and then that becomes a self-fulfilling prophecy and that causes people to behave in certain ways when the market approaches those levels the way they behave as they buy off those levels they sell off at those levels they take profit into those levels so much as show when example here with just take this first one and put a horizontal line on it OK. But these big ones are.

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