The first thing you need to learn about the price action trading is to identify the swing highs and lows. They are the building blocks of the most price action strategies and can be used as levels of support and resistance, and also for drawing of trend lines and price channels. Swing high occurs when the maximum of the price bar (candlestick) is above the maximums of the previous and the next two bars (candlesticks). Swing low occurs when the minimum of the price bar (candlestick) is below the minimums of the previous and following two bars (candlesticks).

Swing highs and lows on EUR/USD chart