Definition
A swing high is a local peak in price where an asset’s upward move pauses and reverses downward, creating a short-term high on a price chart. It is identified as a point where the price is higher than the prices immediately before and after it. Swing highs help describe market structure by marking areas where buying pressure weakened and selling pressure started to dominate. They are often used to visually segment price action into waves or swings within broader trends.
In the context of crypto trading, swing highs appear across different timeframes, from intraday charts to long-term views. They do not necessarily mark the absolute top of a move, but rather notable turning points within ongoing price fluctuations. Because they reflect shifts in short-term sentiment, swing highs are closely related to how traders interpret volatility and temporary changes in direction. Multiple swing highs at similar price levels can indicate areas where the market has repeatedly struggled to move higher.
Context and Usage
Swing highs are a basic building block of market structure, helping to outline whether price is generally trending up, trending down, or moving sideways. A series of higher swing highs can indicate an overall upward bias, while lower swing highs can signal weakening conditions. They are commonly referenced when describing how price has behaved over time, without requiring precise numerical thresholds.
Because swing highs form where price momentum stalls, they are naturally influenced by volatility. In more volatile conditions, swing highs may form more frequently and with larger price differences between them. In calmer conditions, swing highs may be fewer and closer together. Across all environments, the concept of a swing high remains the same: a temporary high point that helps map the path of price movement.