Trend: higher highs and higher lows
- Identify swing highs and lows
- Define up-, down- and sideways trends objectively
- Know when a trend is broken
Swings
Prices move in waves. A swing high is a peak with lower highs on both sides; a swing low is a trough with higher lows on both sides. NexusCore's tools use 5 candles on each side to confirm one — which also means a swing is only confirmed 5 candles after it happens.
Three states
- Uptrend: each swing high is higher than the last (HH) and each swing low too (HL).
- Downtrend: lower highs (LH) and lower lows (LL).
- Range: swings overlap without progress.
When is a trend broken?
Not when a red candle appears, not when RSI is "overbought". An uptrend's structure breaks when price closes below the last higher low — the low that buyers had to defend. Until then, every decline is a pullback. In a downtrend, the break is a close above the last lower high.
That last higher low is also where a stop belongs for a trend-following long: if it breaks, the reason for the trade is gone.
Measuring trend with averages
Moving averages summarise the same thing smoothly: price above a rising 20 and 50 EMA is an uptrend. NexusCore's trend read uses one rule for every timeframe — the 20 vs 50 EMA, their slope, and ADX for strength — so "up" means the same on 15m and 1D.
Common mistakes
- Calling tops: "it has gone up too much" is not a structure break.
- Ignoring which timeframe a trend is on: a 15m downtrend can sit inside a 1D uptrend.
- Counting every wiggle as a swing — use the same rule each time.
Check yourself
1. In an uptrend, what breaks the structure?
- Any red candle
- A close below the last higher low ✓
- RSI above 70
2. Swing highs 100, 108, 104 and swing lows 90, 97, 92. What is this?
- A strong uptrend
- The uptrend has stalled: a lower high and a lower low ✓
- A downtrend for months
3. Why is a swing point only confirmed a few candles later?
- Exchange delay
- You need candles after it to know it was a peak or trough ✓
- It is not
Terms in this lesson
- Higher high / higher low
- The building blocks of an uptrend.
- Swing high / low
- A peak (trough) with lower highs (higher lows) on both sides; NexusCore uses 5 candles each side.