Why Swing Points Matter
Every concept in SMC — BOS, CHoCH, order blocks, liquidity pools — depends on correctly identifying swing highs and swing lows. Get these wrong and your entire analysis falls apart. A swing high is a candle with lower highs on both sides. A swing low is a candle with higher lows on both sides.
The Rule of Three
A reliable method: a swing high requires at least 3 candles — the candle before is lower, the swing candle is the highest, and the candle after is lower. Same logic inverted for swing lows. More candles on each side = more significant swing point.
Major vs Minor Swing Points
Major swings are visible on the higher timeframe and represent significant structural points. Minor swings are only visible on the current or lower timeframe and represent internal structure. For BOS and CHoCH, always use major swing points. Minor swings are for internal liquidity and entry refinement.
Common Mistakes
Labeling every tiny wick as a swing point creates noise and false signals. Using inconsistent rules leads to different structure reads on the same chart. Quantum Algo uses algorithmic swing detection to ensure consistent, objective market structure identification.