What is the difference between a lower high and a low?

A “lower high” occurs when the price of a currency pair reaches a high that is lower than the previous high, followed by a downward price movement. A “lower low” occurs when the price of a currency pair reaches a low that is lower than the previous low, followed by a downward price movement.

What are higher highs and lower highs?

When looking for “Higher highs” and “Lower highs”, we are only looking at the top of each candle. If the highest point of the wick on today’s candle is higher than the highest price we saw throughout yesterday, this is defined as a higher high.

Should I look for lower highs or lower lows in a downtrend?

If correctly identified Lower Highs in a downtrend the price change in your favor will be much greater. You can end up in a really big and quick price change that will make a big difference to your account. If you like taking a big risk you can look for Lower Lows.

How do I find lower highs and lower lows?

Finding lower highs and lower lows is extremely easy. 1. Look at the chart and make sure you have either OHLC or Candlestick Patterns charts turned on (so you can see the highs and lows of the session). 2. Find the most recent high, then look left.