What are lower highs & lower lows?

Lower highs and lower lows create bearish trends and are the clues in how the market is trading using market structure. If a lower high is created, then a lower low is created afterwards, these essentially create a downward staircase of price movements to the downside as you can see in the image below:

What are lower highs and lower lows patterns?

The Lower Highs and Lower Lows Pattern is a momentum-based pattern that occurs when the market is losing steam. It's essential to keep an eye out for these patterns when analyzing your next trade. By using technical analysis tools like moving averages and trend lines, investors can identify these patterns with ease and make informed decisions.

How to identify lower highs and lower lows?

To identify lower highs and lower lows, traders should look for a series of highs and lows that are lower than the previous ones. This pattern is indicative of a downtrend in the market. By understanding how this pattern works and using it effectively, you can increase your chances of making profitable trades.