Swing Highs and Lows Detector

How it works

The Swing Highs and Lows Detector analyzes price action to identify key structural points by comparing current price movements to previous swing points. It uses two detection modes: 'Open' which compares closing prices to the first open of the opposite streak, and 'High/Low' which examines the high of bearish or low of bullish candles.

Once a shift is confirmed, the indicator scans between bars to find the most significant swing high or low. It then labels these points directly on the chart with color-coded markers, highlighting Higher Highs (HH), Lower Highs (LH), Lower Lows (LL), and Higher Lows (HL) to help traders understand price structure.

Why it may be useful

The Swing Highs and Lows Detector provides traders with a systematic approach to understanding market structure and potential trend changes. By automatically identifying key pivot points, it helps traders recognize strength or weakness in price action without manual tracking, reducing cognitive load and potential human error.

This tool is particularly valuable for traders using technical analysis strategies like Smart Money Concepts (SMC), breakout trading, and trend following. It offers clear visual cues about market dynamics, allowing traders to make more informed decisions about potential entry and exit points.

When to explore it

The indicator works best in markets with clear trending or ranging behavior, where price movements create distinct swing points. It is particularly effective in timeframes from short-term (scalping) to medium-term (swing trading), helping traders identify potential trend reversals and continuation patterns.

Traders can leverage this tool most effectively when combining it with other technical analysis methods like support and resistance zones, liquidity sweeps, or volume analysis. It is especially useful for confirming trend strength, timing entries and exits, and identifying potential breakout or breakdown opportunities.

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