Shorthand for comparing each swing to the previous one. Higher highs and higher lows describe an uptrend; lower highs and lower lows describe a downtrend; a mix describes a range or a transition.
How traders use it: In an uptrend, the most recent higher low is often treated as the level that "should" hold; in a downtrend, the most recent lower high.
Common mistake: Counting wicks on one swing and closes on the next. Use the same rule every time.
Related: Trend · Change of character (CHoCH) / market structure shift (MSS) · Swing high / swing low
See this term in the full glossary · All terms
Concepts only. Education only, not financial advice. No pattern on this site has a published win rate.