What is a lower high?

Beginner Questions
1

hi

Sell:

  1. First candlestick makes Higher High
  2. Second candlestick makes Lower High
  3. Third candlestick breaks low of 2nd candlestick (candlestick that made Lower High)
  4. Sell when 3rd candlestick breaks low of 2nd candlestick.

Higher high:price closes higher than previous day/week (depending on which time frame you use).

what is a lower high???

Thanks.

2

A high lower than the most recent high.

Say the market’s put in a high at 100. It then falls back to 90, then it rallies up to 98, but can’t go higher. That’s a lower high.

3

See thumbnail, the other side to this is higher lows &
lower lows.

An uptrend is indicated by the price making higher highs &
higher lows

Downtrend = lower highs & lower lows. (As thumbnail)


4

where can you find more about this.
I googled it and find no result.

Thanks.

5

Have you tried the school as your 1st stop.

School of Pipsology - - Beginner’s Guide to Forex Trading, Free Forex Education, Learn to Trade Forex, Forex Training - BabyPips.com

then have a look at the eBook below.

Free Forex Books, Download Best Forex Books, Forex E-Books

Peaks and Troughs - by Martin J. Pring

6

Hi

I read the school.
But i don’t recall anything about higher highs, lower highs…

7

Take a look at this page it may not mention them by name but there
are higher highs, higher lows, lower lows & lower highs on the page.

Trend Lines - 2nd Grade: Support and Resistance - Beginner’s Guide to Forex Trading, Free Forex Education, Learn to Trade Forex, Forex Training - BabyPips.com

Also did you look at the eBook?

8

Does seem confusing at first…

“what is a lower high”

Easiest way to think about it is the first word of lower high is “lower”.
Which means what? what is lower?
It is refering to the High which is the second word.

If you forget about the ranges of open high low and close, when a person is refering to a lower high. They are talking about, looking at the high of each candle whether that be for minute, hour, day, week, month or year. Is irrevelant.

They are looking at the highs [U]only[/U] of that stock or currency for whatever timeframe. and making the observation that the current high is lower than the previous high

Down day would be a lower high, day one high of 100, day two high of 99
Up day would be a higher high, day one high of 99, day two high of 100

“Lower” open
"Lower" high
"Lower" low
"Lower" close

All mean the same thing it is lower than the previous point it was at.

Think that is as basic as I can think to describe it.

Kangi

9

Thanks guys.
Now i finally understand.