Find the larger move first
Before planning a swing trade, find the stock’s long-term structure. In this example, we will study RH on the monthly time frame.
Think of structure like a fence around a field. The swing low marks one side, and the swing high marks the other. Price can move inside that space without changing the larger structure.
Open the Structure tab
Search for RH in Eden. Open the Quote widget, select the Structure tab, and choose Monthly.
The widget labels the monthly structure as bullish. That tells us the larger structure is still pointing up, even though RH has fallen far below its old high.
Read the swing low and swing high
Look at the Range section inside the Quote widget. Eden shows both ends of the current monthly structure:
- Swing low
- $73.14 Possible reversal below a completed monthly close
- Swing high
- $744.56 Possible continuation above a price break
The latest quote is 6.68% through the range. That means price is sitting near the bottom of this wide monthly structure.
Draw the range on TradingView
Open the RH monthly chart in TradingView. Use the horizontal ray tool to draw one line at $73.14 and label it swing low. Draw a second line at $744.56 and label it swing high.
Know what would change the structure
RH’s monthly structure remains bullish while it stays above the $73.14 swing low. A dip below the line during the month is not enough by itself.
The bullish structure becomes invalid when a completed monthly candle closes below $73.14. Waiting for the completed close keeps one short move from changing a long-term conclusion too early.