Swing Highs/Lows & Candle Patterns
By LuxAlgoSep 17, 2020
The Swing Highs/Lows & Candle Patterns indicator labels confirmed swing highs and lows and identifies which of six candle patterns occurred at each: hammer, inverse hammer, bullish engulfing, hanging man, shooting star, or bearish engulfing. Every label also classifies the swing as HH, HL, LH, or LL, so trend structure and the candles that shaped it are read together as visual confirmation of potential reversal points.
By design the tool backpaints: displayed components are offset into the past so each candle pattern is placed and validated against the swing point it actually formed at.
How to Trade the Swing Highs/Lows & Candle Patterns?
- HH / HL labels: higher highs and higher lows, meaning upward structure is intact.
- LH / LL labels: lower highs and lower lows, meaning sellers are setting the terms.
- Pattern at the swing: a hammer tagging a swing low or a shooting star tagging a swing high adds candle-level evidence that the turn may hold.
- Hover a label: to read further details about the detected pattern's characteristics.
Watching the sequence of labels evolve, for instance LL and LH giving way to HL and HH, helps frame reversals and the relative strength or weakness of the current move.
Swing Highs/Lows & Candle Patterns Settings
- Length: sets the sensitivity of swing high/low detection. Lower values confirm swings from shorter-term price variations and print more labels; higher values reserve labels for more significant turns.
Frequently Asked Questions
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