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Market structure / ChartArmory

Trend vs range: reading swing highs and lows

Describe the market structure before naming a signal.

Follow the structure

Compare successive swing highs and lows. Rising or falling sequences can describe a trend; repeated movement between similar areas can suggest a range. These are working descriptions, not permanent market labels.

Name the timeframe

A pullback on one chart can sit inside a broader trend on another. State which timeframe your observation belongs to. Do not switch timeframes simply to find agreement with an initial opinion.

Allow for transition

A range boundary is an area of interest, not an impenetrable wall. A move beyond it may fail or develop further. Keep an uncertain classification when price structure is mixed.

Build a review habit

Annotate the structure before looking at indicator markers. Then compare whether the tool adds useful context or repeats the same information. Keep examples that contradict your interpretation as well as those that fit.

Worked example: structure, not prediction

Imagine highs of 100, 104, 108 and lows of 95, 98, 101 on one timeframe. Both sequences rise, so an upward-structure description fits those observations. If later highs are 108, 107, 108 and lows 101, 102, 101, a range description may fit better. These invented prices illustrate classification, not a market result or a buy signal. Record the timeframe and the rule used to identify a swing. An unfinished candle cannot establish its final high or low; mixed sequences should remain mixed rather than being forced into a trend label.

Official references

Source pages may be in English.