Swing Highs and Swing Lows in ICC
1. Indication (I): - Swing High: When the price breaks above a resistance level, this movement creates a new swing high. This swing high marks the peak of the initial breakout where liquidity from breakout traders is captured. - Swing Low: Conversely, when the price breaks below a support level, it creates a new swing low. This swing low marks the trough of the initial breakout where liquidity from breakout traders is captured. 2. Correction (C): - After the price forms a swing high, it often corrects by moving downwards, grabbing liquidity from the opposite direction (below the initial breakout level). This downward movement could form a new swing low, which is lower than the initial swing high. - Similarly, after the price forms a swing low, it may correct by moving upwards, grabbing liquidity from the opposite direction (above the initial breakout level). This upward movement could form a new swing high, which is higher than the initial swing low. 3. Continuation (C): - After the correction phase, the price resumes its movement in the direction of the initial breakout. For example, if the initial indication created a swing high, after correction (price grabbing liquidity downwards), the continuation phase would see the price moving upwards again. This movement can surpass the initial swing high, creating a new higher swing high. - Similarly, if the initial indication created a swing low, after correction (price grabbing liquidity upwards), the continuation phase would see the price moving downwards again. This movement can surpass the initial swing low, creating a new lower swing low. ### Example: Let's break down an example scenario using the ICC strategy: 1. Indication Phase: - Price breaks above a resistance level at $100, creating a swing high at $105. 2. Correction Phase: - Price then corrects and moves down to $95, forming a swing low as it grabs liquidity from below the initial breakout level. 3. Continuation Phase: - After capturing liquidity, the price moves back up past the $100 resistance level and continues to rise. This move can create a new swing high, say at $110.