Higher Highs and Higher Lows?

#1
Hi Guys

I know this is a very stupid question. I spinning my head to understand the tearm

Higher Low
Highre high

Lower low
lower high

thanks
 

vasa1

Well-known member
#3
You can also read this for more:
....Sperandeo makes the following definition,

* An uptrend is a sequence of rallies to successively higher highs, punctuated by pullbacks, with each pullback low ending above the previous pullback low.

and conversely for a downtrend,

* A downtrend is a sequence of declines to successively lower lows, punctuated by rallies, with each rally high ending below the previous rally high.
 
#4
Uptrend & Downtrend

Higher highs & higher lows means that the market is in an uptrend. The bulls have taken over as the demand is higher than the supply so there is a lot of buying happening. Also the lows are higher because there is not much selling and every dip is an opportunity to enter.

Lower lows & lower highs is the reverse. The market is in a downtrend, the mode is bearish and the supply is higher than demand so there is heavy selling causing new lows. The highs are lower because there is not much buying and every rise is an opportunity to exit.
 
Top