higher high, lower low vs lower high, higher low?

<p>If you have a higher-low you want to get long but only when the price begins to rally again. The 52 weeks high/low is the highest and lowest price at which security such as a stock has traded during the time period that equates to one year. The changes in prices show lower high and lower low during a downtrend price that higher in value decreased the following period showing the lower high concept. In comparison to higher prices finished lower prices change negatively and become even lower in the next period of time on the market.</p>

<p>Higher low indicates that an uptrend is occurring with the overall increase in the value of the instrument. Where lower high can be seen in downtrends and show a decrease in value. You need to trigger a trade signal that tells when you enter the trade. Once you have a lower high then you want to get short but only when the price begins to drop again.</p>

<p><br>Highs and lows are major reference points for traders. Especially in daily charts, they are regarded as key points. The reason for this is their close link to the trend definition in chart analysis. Higher highs + higher lows define an upward trend. Lower highs +lower lows define a downward trend. Many traders pay attention to the progress of these points. If the market price succeeds in surpassing yesterday's high, the market is bullish. This is especially true if there is an upward trend on the daily chart, as well. Vice versa, if the market price reverses below yesterday's low, the market is bearish, particularly when complemented by a downtrend in a higher time frame. That same principle applies to all time frames. However, there is not always a clear sequence of higher or lower highs and lows. There are also sideways phases. In the case of lower highs +higher lows, the trading range narrows which is a sign of decreasing volatility. A stock making lower highs and higher lows is in a technical pattern called a symmetrical triangle. The symmetrical triangle forms because there are buyers at the lower range and buyers “buying on the dip” as the highs of the range drop. Sellers are diminishing in numbers and buyers are taking control.</p>

<p>Higher highs and higher lows indicate that an uptrend is occurring with the overall increase in the value of the instrument, while lower highs and lower lows can be seen in downtrends and show a decrease in value.<br></p>

<p><br>When a price makes a new high crossing the previous high, while simultaneously not violating the recent reversal low is known as a “higher high, higher low” formation.</p>