OPEN-SOURCE SCRIPT
Updated Swing Point - VALID/ INVALID
This indicator identifies reliable swing highs and lows by combining structural patterns with momentum confirmation. It first looks for a standard three-candle peak or valley, allowing up to two candles on the right side to form the necessary lower low or higher high. Once the structure forms, it requires a candle body to close beyond the extreme wick of the peak or valley within that same two-candle window. If both conditions are met, it plots a red or green triangle to mark a confirmed swing point; if the structure forms but the momentum close fails, it plots a purple triangle to warn you of a setup that lacked the power to follow through.
Release Notes
The Logic: It looks for a classic 3-candle peak or valley, giving the market up to two candles on the right side to complete the structural shape (Condition 1). It then checks if a candle body convincingly closed past that peak/valley's extreme wick within that same two-candle window (Condition 2).The Signals: If both conditions are met, it plots a Red (High) or Green (Low) triangle, marking a high-conviction structural reversal point. If the shape forms but the body close fails, it plots a Purple triangle, warning you of an unconfirmed swing—which often acts as a liquidity trap or a target.
The Engine: It features a dual-rendering system with a built-in toggle. You can either show infinite historical swings for deep backtesting, or flip the toggle to show an exact, strict count (e.g., only the last 20 total swings) using invisible labels to keep your live trading chart completely clutter-free.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.