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Understanding ICT Swing Highs in 3 Steps

The document explains the concept of ICT swing high, which is a market turning point characterized by a peak formed by a three-candle formation. It provides steps for identifying swing highs on live charts and discusses their significance in analyzing market trends. Additionally, it clarifies that the type of candlestick does not affect swing high formation and highlights the conditions under which swing highs typically occur.

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Kyaw Swar Theim
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81 views4 pages

Understanding ICT Swing Highs in 3 Steps

The document explains the concept of ICT swing high, which is a market turning point characterized by a peak formed by a three-candle formation. It provides steps for identifying swing highs on live charts and discusses their significance in analyzing market trends. Additionally, it clarifies that the type of candlestick does not affect swing high formation and highlights the conditions under which swing highs typically occur.

Uploaded by

Kyaw Swar Theim
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

ICT Swing High Explained in 3 Steps

Are you struggling to understand ICT swing high?

In this article we will teach you all about ICT swing high from its formation to
identification and to its use with examples.

A swing high is basically a turning point of market after having a peak. The turn can be
a short term retracement or reversal of trend.

But to understand ICT swing high you must understand about the anatomy
of Candlestick.

Lets begin with defining the ICT swing high.

What is ICT Swing High?


As the word swing means to revolve around a fixed point.

In trading when price moves up and then down around a particular level making a peak
called swing high.

Swing high can be seen in any market and any time frame.
Traders use swing high in technical analysis to analyze the trend of market.

Opposite of ICT swing high is ICT Swing Low .

Swing High Formation


ICT swing high is basically a three candle formation.

Three candles are aligned in such a way that the high of 2nd candle (also the mid
candle) is highest than the highs of 1st and 3rd candle.

As illustrated by a picture below.

So the high of 2nd candle is termed as the swing high because price takes a swing from
there and moves down after making a peak.

Swing High Identification


To identify a swing high in live chart you have to follow these simple steps.

(I) Mark high of a candlestick (probably the highest).


(II) Check the high of candlestick on left (should be lower).
(III) Check the high of candlestick on right (should be lower).
If the highs of candlesticks on left and right are lower than the high of candlestick in
middle, it is a swing high.
In the picture below you can see a real market example.

Swing High Uses


Swing high is a useful tool to identify the trend of market and strength of trend.

Higher swing highs indicate an uptrend while lower swing highs indicate a down trend.

Distance between swing highs shows the strength of trend.

A swing high can be marked as the turning point of market after the shift in momentum.

Does the Type of Candlestick Matters for Swing High


Formation?
No candlestick type does not matter for swing high formation.
You just need to look for a highest wick of 3 candles either its a bullish candlestick or
bearish.

Why Swing High is Formed?


Swing high is formed mostly at resistance area where price face rejection due to the
sellers entering the market.

After formation of swing high you may see a short bearish retracement in bullish trend.

While in bearish trend after formation of swing high you may see continuation of bearish
trend and lower prices.

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