What is a lower high and lower low pattern?

In almost all markets, the lower high and lower low pattern signals a short-term reversal. We develop multiple lower high and lower low trading strategies. What do lower lows and lower highs mean? The pattern is pretty self-explanatory, but let’s show it on a chart and look at this setup on the chart:

Is lower highs a reversal pattern?

The results indicate that the lower highs and lower lows pattern is a reversal pattern. The best strategies can be found in our…. Yes, I’d like to make money! But the pattern is in the plural form, not the singular form: lower highs, not lower high. Let’s see what happens if we use a two-day pattern.

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.