Lower high and higher low
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  1. #1
    tegacollins is offline Newbie
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    Talking Lower high and higher low

    I am tegacollins. A newbie! kindly know that for the next weeks or month I will be bombarding you with questions.

    Please what is lower high and higher low and how do we identify them in a trend or chart?

  2. #2
    Shr1k's Avatar
    Shr1k is offline FX-Men Honorary Member
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    Welcome to Baby Pips
    have you done the school? If not work your way through it many of your question will be answered.
    A HL or LH
    Its just what it sounds like. A higher low is a swing low that is higher up the chart then the last swing low. A swing low is a point that is lower then price immediately before and after that point. You can not define a swing point as it happens its only apparent after some time has passed. A Bill Williams Fractal will show you a swing point generally. The Fractal indicator that comes with MT4 will draw fractals on your chart. A Fractal is a 5 candle pattern a Fractal can not be established until the 3rd candle after the low or high point. If you put the indicator on a 1 min chart you will see the indicator appear and disappear as the chart moves. Once an arrow has stayed on the chart for 2 candles it will not disappear. This is called repainting.
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    On this gap open we see a bull trap set by bears trying to eat raccoons in the upward secondary tick pattern that is divergent to our Proprietary order flow indicator. You can see the x rated exhaustion level by which all of the sheep will be pulled in and sheared by the smart money

  3. #3
    akeakamai is offline Banned FX-Men Honorary Member
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    Quote Originally Posted by tegacollins View Post
    I am tegacollins. A newbie! kindly know that for the next weeks or month I will be bombarding you with questions.

    Please what is lower high and higher low and how do we identify them in a trend or chart?
    I would simply recommend that you zoom out on your favourite price chart. Make the candles very skinny, so that you can see a maximum amount of price history information. You'll start to see very definite zig zag patterns up and down and I think your identification will be much more intuitive

    Generally you are looking for a higher high/higher low pattern for Buy signals, and a lower low, lower high pattern for Sell signals.

    Here's an example from a recent 15M GBP/USD chart:


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