Higher highs and higher lows are terms used in technical analysis to describe a pattern of price movements in a financial market or asset.
Higher highs refer to a pattern where each new high price in a trend is higher than the previous high price. This indicates that the market is experiencing an upward trend and that buyers are willing to pay increasingly higher prices for the asset.
Higher lows, on the other hand, refer to a pattern where each new low price in a trend is higher than the previous low price. This indicates that the market is experiencing an upward trend and that buyers are continuing to step in at higher and higher prices, creating a pattern of higher support levels.
Together, higher highs and higher lows can be indicative of an uptrend in the market, while lower highs and lower lows would indicate a downtrend. These patterns are commonly used by traders to identify trends and make trading decisions.
Higher highs refer to a pattern where each new high price in a trend is higher than the previous high price. This indicates that the market is experiencing an upward trend and that buyers are willing to pay increasingly higher prices for the asset.
Higher lows, on the other hand, refer to a pattern where each new low price in a trend is higher than the previous low price. This indicates that the market is experiencing an upward trend and that buyers are continuing to step in at higher and higher prices, creating a pattern of higher support levels.
Together, higher highs and higher lows can be indicative of an uptrend in the market, while lower highs and lower lows would indicate a downtrend. These patterns are commonly used by traders to identify trends and make trading decisions.