Swing Low
A trough with higher lows on both sides — a local turning point where buyers took control.
Also called: pivot low · local low
In plain language
A swing low is the mirror of a swing high: a candle whose low is beneath a set number of candles on both sides.
It is the most commonly used anchor for a long trade’s stop. If price trades below the swing low that defined the setup, the premise has failed.
Because so many stops cluster just beneath obvious swing lows, that area is also a frequent target for liquidity sweeps.
Why it matters
The distance from entry to the relevant swing low is your stop distance, and that number determines your position size. Structure and sizing are the same conversation.
Common mistakes
- Placing the stop exactly at the swing low rather than beyond it with a buffer.
- Choosing a distant swing low for a comfortable stop and accepting a much larger real risk.
Keep exploring
These concepts are connected. Understanding one usually makes the next one easier.
A peak with lower highs on both sides — a local turning point in price.
A swing low that sits above the previous swing low, showing buyers stepping in earlier.
A swing low that breaks below the previous swing low, confirming downward momentum.
A predefined exit that closes a losing trade before the loss becomes serious.
The gap between your entry and your stop loss — your risk on a single unit.