Swing High & Swing Low Finder Indicator MT4 | MT5

The Swing High and Swing Low Finder is a technical analysis indicator designed to detect and mark important swing highs and lows on the price chart. A swing high is defined as a local peak where the price is higher than a set number of surrounding candles on both sides, while a swing low is a local trough where the price is lower than those surrounding bars.

Moreover, this indicator uses the InpRangeBars input to define how many candles to check on each side of a candidate swing point. The default value is 12, meaning a high or low is considered a swing point if it exceeds the highs or lows of the 12 preceding and 12 succeeding candles.

However, traders often use the SHSLF for several trading strategies, such as:

• Trend Analysis: Use swing highs and lows to identify higher highs/higher lows (uptrends) or lower highs/lower lows (downtrends).
• Support & Resistance Mapping: Swing lows can serve as support zones, and swing highs as resistance.
• Breakout Confirmation: When the price breaks a swing high or low, it may indicate a breakout or trend continuation.
• Entry & Exit Points: Traders can use these levels to refine entries or set stop-loss and take-profit levels.

To make accurate trade decisions, traders are advised to enter the market following these two signals:

1. Buy Entry: Enter long after detecting a swing low followed by a higher swing low and a breakout above a previous swing high.
2. Sell Entry: Enter short when the price creates a swing high followed by a lower swing high and breaks below a swing low.

Furthermore, traders are urged to avoid relying solely on swing points for entry decisions, as these levels reflect past price structure and not future direction. They had to combine this indicator with trend-confirming tools such as moving averages, RSI, or the MACD to validate momentum and avoid false signals.

1/ In the CADJPY M15 chart example, the MT4 version of the Swing High & Swing Low Finder Indicator helps confirm an uptrend with the appearance of a blue arrow, signaling a potential buy opportunity. Traders could consider closing their positions when a red arrow appears, indicating a possible market reversal and allowing them to secure profits. When a new swing low (blue arrow) forms, it can suggest a re-entry point to continue benefiting from the bullish trend. Later, the SHSLF shows another swing high (red arrow), marking a suitable exit point.

However, when the price breaks below the most recent swing low (acting as support), this may indicate a potential bearish reversal. The next swing high arrow provides a short-selling opportunity, and traders can ride the downtrend until a new swing low arrow appears, signaling the next potential shift.

2/ In the AUDCHF H4 chart example, the MT5 version of the Swing High & Swing Low Finder Indicator confirms the bearish movement with the appearance of a red arrow, signaling a potential sell opportunity. Traders could consider closing their positions when a blue arrow appears, indicating a possible market reversal and allowing them to secure profits. When a new swing high forms, it can suggest a re-entry point to continue benefiting from the downward trend. Later, the SHSLF shows another blue arrow, marking a suitable exit point.

Furthermore, when the price breaks above the last swing high (acting as resistance), this may indicate a potential bullish reversal. The next swing low arrow provides a long opportunity, and traders can enter the market at the break above the resistance level, and ride the uptrend until a new swing high arrow appears, signaling the next potential shift.