Are highs and lows reversal patterns?

Higher highs and higher lows are considered trending patterns, not reversal ones. They indicate the presence of an uptrend or a bullish market. When the price forms higher highs and higher lows, it shows that buying pressure is rising, and the market participants are willing to buy the asset at progressively higher prices.

What is a higher low & a lower high?

In the context of financial trading, the terms “higher low” and “lower high” are key concepts that help traders understand market trends and momentum. A higher low refers to a situation where the price of an asset drops but the low point is higher than the previous low point.

What does a lower low mean?

A lower low (LL) is a point on the chart where the price reaches a new low that is lower than the previous low. A series of higher highs and higher lows (HHHL) indicates an uptrend, meaning that the price is making higher peaks and higher troughs. Traders often enter positions when they spot a Higher High, expecting the price to continue rising.