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Market Intelligence › Basic Terminologies
The smallest unit of structure, and how it defines a trend
Published by The Retail Trader · JUL 23, 2026 · Market Structure
Not every candle on a chart is equally important. Some points are where price turned — these are called swing points, and the whole language of structure stands on them.
A swing high is a candle whose high is above the highs of the candles on both sides of it. A swing low is the opposite. This is an objective rule, not an opinion.
How many candles to look at on each side is for you to decide. More candles means fewer and larger swing points; fewer candles means more and smaller ones.
Almost all structure decisions come from these:
• The definition of a trend — higher highs and higher lows, or the reverse.
• The placement of a stop loss — often beyond the previous swing point.
• Drawing a trendline — through two swing points.
• The breakout level — the previous swing high or low.
Swing points are confirmed only looking back — on the day one forms, you do not know it. So structure is a lagging description, and drawing predictions from it is a misuse.
This article is for education only — it is not a buy or sell recommendation, makes no claim of guaranteed returns, and is not advisory. Rules, rates and mechanics are changed from time to time by the exchanges, SEBI and RBI, so verify every number yourself with your broker or an official source.