Help with Terminology

Hello, my name is Jim and I am just starting out learning Forex. I have been going to school on this site and it has helped me a lot. I hope this does not sound stupid but I am having trouble grasping some of the terminology. Can someone explain the terms Lower Highs and Higher Lows. I have been studying the charts but I am just not getting what it means.
Thanks for all your help
Texastrooper

Hi Jim:)

To answer your question, price moves in waves. It rarely moves for an extended time in one direction. Look at the eur/usd starting last Monday.

It went up, then back down, but not all the way to the lowest point. It then went up past the most recent high, and then back down. But not as low as the newest low point. In that case, you have a series of higher highs, and higher lows.

The same happens in an extended move down. A lower low, followed by a lower high, and a swing back down to a new lower point.

Posting from my phone, or I’d throw up a chart for you.

I think you can visualize it though. And I’m sure someone will post up a chart showing it in action.

Trading those actions depend on your strategy for entry. Some like to buck a trend, and trade the short retraces, others use those new swing lows and highs to scale in to the bigger move.

Cheers!

Hi Jim,
the high is the top end of a candle or bar, if the next candle has a higher top it is a higher high, if it has a lower top than the preceding candle it is a lower high. The bottom of the candle is the low end so if the next candles bottom is lower than the preceding candle it is a lower low.

If you are analysing a trend the higher highs etc. may be several candles apart but help us decide if the market is trending or ranging.

Well as long as you know what a high and low swing point are I hope this chart helps!

Thank you very much. That helps a lot
Texastrooper

glad to help