“In the chart above, you can see that the price is gradually making lower highs which tell us that the sellers are starting to gain some ground against the buyers. Now most of the time, and we did say MOST - the price will eventually break the support line and continue to fall.”
I am studying chart patterns. What is lower high and higher low. What is the high and low compared to in the chart. Is there a point or level in the chart which can be called a neutral zone and the highs and the lows are measured against it?
Price tends to move in waves, both when it’s going up and when it’s going down.
Take a look at this chart and you’ll see that the trend is up because the high points are higher than the previous ones and the swing lows are higher than the ones before.
Never mind the indicator btw, it’s called zigzag and is useless for real trading, but it does a good job of showing how price moves in waves. In live trading it repaints and is therefore of now use (trust me on that).
