Higher High Lower Low Trading Strategy
You must have heard traders talk about higher high lower low trading strategy,.
You would have also seen them drawing it on the charts
Many traders don’t give much importance to highs and lows and rarely use it in their trading.
But it is one of the most important things for me, and I almost use it every time.
It will give a clear view of the market and helps in technical analysis,
If you have not used highs and lows yet, or do not consider it is important
My request for you is to read the article till the end.
This article will show you the importance of highs and lows.
Highs and lows are helpful for understanding trends.
It also helps us understand when a trend is about to start and when it will end.
What Are Highs and Lows?
How Higher High Lower Low Trading Strategy Is Formed?
How To Use It With Your Technical Analysis?
Whether the market moves up or down, it happens because of buyers and sellers in the market.
When there are buyers in the market, the price will move up.
when there are sellers in the market, the price will move down
Millions of different buyers and sellers are in the market; they all will get separate entries and exits, as per their needs.
It will cause temporary momentum shifting in the market and drive the price to begin the correction.
After the prices are corrected, if the prices are moving toward the bullish side, the buyers dominate the market, and the cycle will continue causing the price to trend and create a series of highs and lows.
For example, the buyers jumped in from level A, so the price will increase as buyers are now more than sellers.
Different buyers and sellers will enter in and exit out at different levels as the prices move up.
At point B, as shown in the image, a bunch of buyers had booked their profits, or sellers had entered.
It will cause a slight momentum change, and the price will move down.
After the price had moved up to point C, From point C onwards, if the buyers still have control of the market, the price will start to move towards the bullish side.
At this time price will break the point B level.
Point A will be our low, where the price moved up, and point B will be our first Higher high.
When the price is retracted or corrected to point C, it will be our higher low, as this low is higher from the point A low.
When the new high breaks the point B high, it will be the new higher high.
Also, when it is again retraced from point D and stays above point C, we will get a new higher low.
It is how the price moves most of the time.
If the market is trending, the price creates a series of higher highs and higher lows.
If the market is down trending, the price creates a series of lower lows and lower highs.
If we can read the highs and lows of the market correctly, we can easily find out our entry points to ride the trend.
The price moves in the same way until it reverses.
When price reverses, it gives us an indication that the trend has changed or is changing.
It will help if you observe the price.
Many traders might be using trendlines to spot if the price is changing the trend or not.
I recommend, Along with your patterns, trendlines and strategies, using the highs and lows will take you on a whole different level.
It gives you clarity how to trade with higher high lower low trading strategy?
With clarity, you will get confidence to trade higher high lower low trading strategy with your analysis.
How to spot that trend is going to reverse, or a momentum shift has happened?
For example, in the previous chart, the price had gone up to point D. In this reversal case, if the price makes a new higher low at point E.
After making a new higher low at point E, it will not create a new higher high.
It will create the new low, which would be a new lower low.
In this image, if the price breaks the new higher low (point G) and forms the new lower low, it will be the trend reversal.
If the price didn’t form the new lower low (a point I) and broke the new high F, you can ride the trade.
Something like this happens; it tells us that there has been a momentum change in the market, and the trend is ready to reverse.
Price tells everything; the only work you have to be done is an observation of the cost.
The higher high and lower low strategies will be helpful for the trend prediction.
It can also be beneficial for the identification of reversal trends.
Remember one thing, this higher high and lower low strategy will not work alone.
You will be at another level by applying your strategies or any learned trading course and patterns with this higher and lower low strategy.
My suggestion is to learn any trading course and trade according to your analysis and apply this higher high lower low trading strategy
Our recommended course will help to develop your trading skills.
LEARNING AND ANALYSING THE MARKET IS THE KEY TO BE A SUCCESSFUL TRADER.
If you are interested in the trading course and most probable trades, you may contact us to be a profitable and most probable trader.
Our recommended course will be helpful to improve your trading skills.
The original program will be in our private group for a trading course.
For applying these higher high lower low trading strategy the best platform is a trading view
I am not a trainer; in the stock market, there are no trainers; all are learners.
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