Swing Low

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Dictionary Says

Definition of 'Swing Low'

A term used in technical analysis that refers to the troughs reached by an indicator or an asset's price. A swing low is created when a low is lower than any other point over a given time period. Successively lower swing lows indicate that the underlying asset is in a downtrend, while higher lows mean it is in an uptrend.

Swing Low
Investopedia Says

Investopedia explains 'Swing Low'

Swing lows are useful for an investor who holds a long position in an asset because swing lows can be used to determine strategic positions for a stop-loss order. One main tenet of the Dow Theory is that a if a major average breaks below a previous low, this movement can be interpreted as the beginning of a downtrend. In the case of an indicator, if it fails to make a new swing low while the price continues to decline, a divergence occurs which could mean that the downtrend is coming to an end.
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'Swing Low'

  • Simple Strategies For Capitalizing On Trends

    http://www.investopedia.com/articles/trading/09/capitalizing-trends.asp
    Find out how following a trendline bounce or a new swing high
    or low can help you get into a trend early. ...

  • Catching A Falling Knife: Picking Intraday Turning Points

    http://www.investopedia.com/articles/trading/10/intra-day-turning-points.asp
    ... In the case of an uptrend reversing, price needs to stop short of the recent
    swing high, and then retreat below the recent swing low. ...

  • 3 Key Signs Of A Market Top

    http://www.investopedia.com/articles/trading/10/signs-of-market-top.asp
    ... 3. The major indexes move below a prior swing low. ... Therefore, when the line corrects
    below a prior swing low, the trend for the indicator is declining. ...

  • How To Use A European Open Forex Strategy

    http://www.investopedia.com/articles/forex/11/european-open-forex-trading-strategy.asp
    ... Trades are made after a swing high, then a swing low is made, both 25 to 40 pips
    from the open, and our trade is entered when a new high is reached (or swing ...

  • Uncover Forex Profits With The Turn Trade

    http://www.investopedia.com/articles/forex/08/turn-trade.asp
    ... In our example, if the price trades above the 2SD lower Bollinger band on the closing
    basis, we enter at market using the prior swing low minus five points as ...

  • The "Turn To The Carry" Trade

    http://www.investopedia.com/articles/forex/08/turn-to-carry.asp
    ... at market. 3. Set the stop at swing low minus 5 points and calculate your
    risk (Risk = Entry Price - Stop Price). 4. Set profit ...

  • How To Use The Forex Pure Fade Trade

    http://www.investopedia.com/articles/forex/08/pure-fade-trade.asp
    ... Place a stop at swing low minus 10 pips. ... We immediately placed our stop at the swing
    low of 1.1862, risking 22 pips on the trade. Figure 1: Pure Fade, EUR/US. ...

  • Trading The MACD Divergence

    http://www.investopedia.com/articles/forex/05/MACDdiverge.asp
    ... One of the most common setups is to find chart points at which price makes a new
    swing high or a new swing low, but the MACD histogram does not, indicating a ...

  • A Winning Memory-Of-Price Strategy Variation

    http://www.investopedia.com/articles/forex/08/memory-price-variation.asp
    ... 3. Add the value of the amplitude to the swing low and make that your ultimate
    stop. 4. Enter long the full position (two units) when ...

  • Trading The MACD Divergence

    http://www.investopedia.com/articles/forex/05/macddiverge.asp
    ... One of the most common setups is to find chart points at which price makes a new
    swing high or a new swing low, but the MACD histogram does not, indicating a ...

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