Trading glossary
What are higher highs and higher lows?
Higher highs and higher lows are the swing points of an uptrend: each peak and each trough is above the one before it.
An uptrend is defined by its swings. Each rally peaks above the last one (a higher high) and each pullback ends above the last one (a higher low). The mirror image, lower highs and lower lows, defines a downtrend.
The most recent higher low is the level that matters most in an uptrend. If price closes below it, the sequence is broken.
How traders use it
- Use the most recent higher low as the line in the sand for an uptrend.
- Expect pullbacks. A pullback that holds above the last low keeps the trend intact.
- A failed attempt at a higher high is often the first warning before a lower low.
Example
A stock rallies to 100, pulls back to 92, rallies to 106, pulls back to 97, then rallies to 111. Each high (100, 106, 111) and each low (92, 97) is above the last: higher highs and higher lows.
Frequently asked questions
What are lower highs and lower lows?
The swing points of a downtrend: each rally peaks lower and each decline ends lower than the last.
How many swings make a trend?
Two higher highs and two higher lows is a common minimum for calling an uptrend.
Related terms
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Educational content only, not financial advice. Chart patterns describe probabilities, not certainties, and every pattern can fail. See our disclaimer.