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.

In this example:

- The initial breakout to $105 is the swing high during the Indication phase.

- The downward move to $95 during the Correction phase forms a swing low.

- The upward move past $100 to $110 in the Continuation phase creates a new swing high.

By identifying swing highs and swing lows within the ICC framework, traders can better understand the market structure and potential future price movements.

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