Smart Money Concept

Can Swing Highs and Lows Reveal the Market Trend?

As soon as you identify the swings correctly, you’ve identified the overall trend correctly.. so you can enter trades correctly👌👌
2026-04-06
Side-by-side swing diagrams showing uptrends and downtrends.

What is the importance of swings in trading? ✔️✅

Look guys, we trade with the trend

The trend is up, we enter buy trades 🔼
The trend is down, we enter sell trades 🔽

That’s it, simply 😃

Correctly identifying swings defines the overall trend

إنت بمجرد إنك حددت السوينجات صح ف إنت كدا حددت الاتجاه العام صح.. يبقى تقدر تدخل صفقات صح👌👌

So how do I identify swings correctly? ✔️

The first thing to look for

Are highs and lows falling or rising

If you find the highs higher than the highs and the lows higher than the lows, then the trend is up and we enter buy trades

And if you find the highs lower than the highs and the lows lower than the lows, then the trend is down

We start with the uptrend 👇👇

Marking internal and external highs/lows in the image

Marking internal and external highs/lows in the image

In the image you have, I marked for you

✅ An internal high or low with a check mark
⭐️An external high or low (swing) with a star mark

🔼 In an uptrend:

1️⃣ - Regarding lows
Since the trend is up, lows are strong and highs are weak (do you know why?)
So how do we say that this low is a swing and not an internal low
When it meets these conditions
✅ Took liquidity of a previous low.
✅Made the price create a new high (BOS)

Here then it will be called an external low (swing low).
And since lows are strong
Then it will be called a strong external low - Strong swing low

2️⃣-Regarding highs
As soon as the price drops and takes liquidity of a previous internal low with the wick or a choch happens, it is called (swing high)
And of course highs are weak in an uptrend because they get broken
So it is called Strong swing high

🔽In the downtrend

It’s the same explanation but reversed—can you apply it yourself or do you need an explanation?

Quiz

Open the chart on BTC

Identify the main swings in the downtrend
and send it to me on Twitter

Mr Bebo
A financial markets analyst and trader with over 7 years of experience, offering a specialized educational approach through a comprehensive 3-level course designed to master SMC concepts. He has also developed his own methodology based on new practical concepts that help improve entry points and build a more professional and profitable trading approach. Over the past 3 years, he has trained more than 600 students through both free and paid educational content.