Hi all,
Am in the middle school section reading about the wedges formation. But they re going on about the higher highs, lower lows etc… I really can’ t get the meaning and can’t get the explanation anywhere. What is a higher high? Is is the higher part of the candle stick shadow? Would be great if someone could explain it to me or redirect me on a link where it is well explained. In school of pipsology it does not explain it, or maybe I be missed the section.
Thank you all for your help.
Nick
2 Likes
Ok so this is probably not that well drawn but bear with me. When the market makes a new high, i.e. you can see a peak.
That high is either higher or lower than the last. If the high is higher you have a higher high (HH) if its lower you have a lower high(LH). There are 4 combos
HH - Higher high
LH - Lower High
LL - Lower Low
HL - Higher Low
In meta trader you can use the zigzag indicator to help pick out proper highs/lows. the rest is just looking at the current high/low position relative to the last.
3 Likes
Should you just apply it to the candles you see in the screen /window? I mean, it depends on how close you have zoomed in or how far you have zoomed out. I mean at some zoom levels you may see 3 months of data with a 1D chart and at another zoom level, still 1D you may just see 1 month. Does it makes sense? There will definitely be some different HH, HL, LH or LL. Or have I completely missed something?
Hi kongdaff
You’re right. Everything is depend on which time frame you look at. On the other hand when you have more experience you’ll see the chart a kind of way while others see it in other ways. And this is normal. The main important thing is to learn and to experience a way how the chart gives you useful information.
It can happen that these highs and lows shows different pictures on D1 compared to H4 or H1.
I zoom in so close just to see the colors of the chart. Then I start analyzing the market on D1 first. I look at the highs and lows whether they increase/decrease or whether they’re confused. Then I check the chart on H4 and H1 too. I look at the same things as I’ve written earlier and I can decide whether there is uptrend or downtrend or it’s better not to trade.
If you think you can follow my technical analyses here: 301 Moved Permanently and 301 Moved Permanently. They may help. I usually write about highs and lows.
1 Like