Strong and weak highs and lows

What it is

In smart money concepts, a strong (or protected) high or low is the swing that caused a break of structure. In an uptrend, the low that launched the move which broke the previous high is the strong low: as long as it holds, the trend holds. A weak (or unprotected) high or low is a swing that hasn't broken structure, such as the latest high in an uptrend, and is expected to be taken out as liquidity.

The terms are practitioner convention rather than a formal definition, so details vary between educators.

How to spot it

• Uptrend: the low before the latest break of structure is strong; the latest high is weak.
• Downtrend: the high before the latest break is strong; the latest low is weak.

How to use it

• Put stops beyond strong highs and lows, not weak ones.
• Treat weak highs and lows as targets.
• A break of the strong low in an uptrend is the real change of character.

Common mistakes

• Putting the stop just beyond a weak low, which is expected to go.
• Calling every low 'strong'.

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