Price structure
To define a trend on a chart, you can use price action. Start by identifying swing highs and swing lows on a chart.
Swing highs
A swing high, as used in this course, is defined by a high point on the chart, where there are two candles closed on the right hand side and two candles also closed on the left hand side – they all have lower highs.
Swing lows
A swing low, as used in this course, is defined by a low point on the chart, where there are two candles closed on the right hand side and two candles also closed on the left hand side – they all have higher lows.
Identifying swing highs and lows allows you to identify trends. For an uptrend you are looking for higher highs and higher lows. For a downtrend, you are looking for lowers lows and lower highs.