Definition
A swing low is a point on a price chart where a down move pauses, forms a local bottom, and is followed by a move back up. It represents a short-term low in price, often used to identify where selling pressure has temporarily weakened. Swing lows help traders visually mark local support zones and understand how price has reacted at different levels over time.
In the context of Market Structure, a series of swing lows and swing highs outlines whether a market is trending up, trending down, or moving sideways. Swing lows are also closely watched in periods of changing Volatility, because sharp or shallow lows can signal how aggressively buyers and sellers are reacting. While a swing low does not guarantee a lasting bottom, it is a key reference point for reading short-term price behavior.
In Simple Terms
A swing low is simply a dip in price that stands out as a small valley on a chart. Price falls, reaches a low point, and then turns upward for a while, leaving that low as a visible turning point. These valleys help outline the basic shape of Market Structure and show where buyers previously stepped in.
When Volatility is high, swing lows may appear more frequently and with larger price moves, making the chart look more jagged. When Volatility is low, swing lows tend to be smoother and less dramatic. In all cases, a swing low is just a short-term low that helps map how price has moved in the recent past.