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Swing Highs and Swing Lows

When Bitcoin moves up and down, which turns matter-and which are just noise? Think of price like stairs: focus on peaks and dips, not every wobble. A...

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LESSON 1 — SWING HIGHS AND SWING LOWS Market structure starts with simple turning points. A swing high is a peak followed by lower prices. A swing low is a bottom followed by higher prices. Higher highs and higher lows usually indicate bullish structure. Lower highs and lower lows usually indicate bearish structure. This helps you distinguish a normal pullback from a possible trend reversal. Open Bitcoin’s one-hour chart. Mark the last three clear swing highs and swing lows. Then decide whether the structure is bullish, bearish, or ranging. Avoid marking every small price movement as a swing. Focus on turning points that created meaningful moves. Quick question. What happens if Bitcoin makes a higher high, then breaks below its previous higher low? That can warn that bullish structure is weakening. But remember, one break alone still needs confirmation and context.

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When Bitcoin moves up and down, which turns matter-and which are just noise? Think of price like stairs: focus on peaks and dips, not every wobble. A swing high is a peak followed by lower prices. A swing low is a bottom followed by higher prices. Higher highs and higher lows usually form bullish structure. Lower highs and lower lows usually form bearish structure. If neither sequence is clear, price ranges. On Bitcoin's one-hour chart, mark the last three clear swing highs and three clear swing lows. Then classify structure. Choose turns that led to meaningful moves. Here's the test: Bitcoin makes a higher high, then breaks below its previous higher low. That is a warning. The bullish pattern is weakening. It is not proof of a reversal. Meaningful turns matter-and a break below the prior higher low is only a warning until confirmation and context support calling a trend change.