What is high low low trading strategy?

The highs and lows of the price of the security are considered based on the time frame selected by an individual. These highs and lows can be used in variations that form a pattern that can be used to identify the trend in the market. Let us move further in this article to understand these patterns. What is Higher High Lower Low Trading Strategy?

What is a higher high & lower low?

A Higher High/Lower Low is a popular trading strategy based on identifying trends in a stock’s price movements. It involves looking for higher highs and lower lows to determine the overall direction of the stock. If the security reaches higher highs and higher lows, this is considered an uptrend, and the trader may look to buy it.

What are high and low patterns in stock market?

Here is a live example where the price of the share made lower lows and lower highs. Thus these high and low patterns help the individuals identify the uptrend or the downtrend in the price of the security. This helps them to take positions in the market based on different scenarios.

Why is a high/lower low a good indicator?

This is because a higher high/lower low pattern is usually indicative of a fairly unstable security, making its future movements hard to predict (at least, based on this indicator in isolation). However, this in itself can be useful information, although it takes a skilled/lucky market analyst to accurately predict the outcome of such a situation.