Every trend is a sequence of swings. A swing high is a peak with lower prices on both sides, and a swing low is a trough with higher prices on both sides. Markets that keep making higher highs and higher lows are in an uptrend. Markets making lower highs and lower lows are in a downtrend.
This is the foundation of Smart Money Concepts. Instead of asking where an indicator crosses, you ask whether each new push is going further than the last and whether each pullback is stopping higher than the last.
Market Pulse finds swings with a five-candle fractal: a high that is the highest of two candles before and two after. A swing is only confirmed two candles later, so the score never uses information it would not have had at the time. Structure is worth up to 30 of the 100 points, the largest single ingredient.
