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Swing
Low |
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The
opposite of a swing high.
A swing low is created when price forms a new low point in a price
swing. At this point a new up swing has the potential to begin
but a solid swing trading
method is needed to identify these points. |
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Swing
lows are most effectively used when identifying stop loss points
for a long trade. If a swing low is broken (and a new swing low
if formed) thus stopping a trader out it can be taken as confirmation
that an up trend is not materialising, at least for the moment.
Momentum traders will use the break of a swing low as an opportunity
to short a security as it may represent confirmation of a down
trend continuation. An illustration of a swing low can be found here. |
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