A swing high situation is created when the price peaks after a rally and before a drop. It’s a potential point of resistance where forex signals indicate a price reversal trend. Traders use this to sell, anticipating a price fall. Knowing the resistance point helps set the optimum sell order or allow timely profit withdrawals. On the other hand, a swing low depicts the lowest point of a price decline before it goes up again. It’s a level where prices receive support and stage a recovery. Traders look to buy currency pairs, understanding that the prices will move upward.