Video with transcript and exercises; approximately four minutes of video.
Define the convention first
For this exercise a swing high exceeds the highs of two candles before and two candles after it. Reverse the rule for a swing low. Equal values remain unclassified. This is one explicit convention, not a universal market definition. Another reviewer should be able to reproduce the labels.
Recognition is delayed
Two later candles must close before the pivot is confirmed. The middle candle's timestamp is not the time at which that information became available. Marking a historical pivot and assuming immediate knowledge introduces future information. Record both timestamps and do not use an unavailable pivot for a simulated live decision.
A hypothetical structure
Confirmed highs of 100, 105 and 109, together with lows of 95, 98 and 102, form rising sequences under our definition. This describes the sample; it does not establish the direction of the next movement. Mixed structure may remain unresolved. These numbers are teaching values, not current quotes or trading performance.
Define what a break means
A wick touch, one close beyond a boundary and several closes are different conventions. Choose the rule before reviewing outcomes. Do not change it whenever a favored example fails. A close beyond a range is not a continuation guarantee; it is a countable event under the chosen definition.
Keep liquidity stories conditional
A visible high can motivate a hypothesis about nearby orders, but a candle does not reveal every stop or a bank's intentions. Record the observed behavior separately from its proposed explanation. An unresolved classification is often more useful than a persuasive story without supporting evidence.
Assignment and completion criterion
Label ten confirmed pivots with the two-bar rule. Record pivot time and recognition time separately. Classify each section as trend, range or unresolved and explain the rule. No live orders. Completion means another learner can reproduce your labels, not that you guessed the next price.
Next we connect structure with trading hours and market conditions.
Examples are hypothetical teaching material, not a trading track record or guarantee.