Module 2 · Lesson 2 of 10

Higher Highs and Higher Lows

By the end, you can identify an uptrend by its structure of higher highs and higher lows.

Mental model

Climbing stairs. Each step up (higher high) is followed by a small rest that's still higher than the last landing (higher low). As long as the landings keep rising, you're climbing.

Core explanation

An uptrend is a sequence of higher highs (HH) and higher lows (HL). Buyers keep paying higher prices, and each pullback is defended above the previous one.

The key tell is the higher low: even when price rests, buyers step in earlier than last time. That's control. The uptrend is intact until a higher low fails to hold.

Beginner vs professional

Beginner thought

“It's up a lot, it must be overbought — I'll short.”

Professional thought

“Higher highs and higher lows — buyers are in control. I don't fight this until a higher low breaks.”

Practice drill

Find a clear uptrend and mark three higher highs and three higher lows in order. Notice how the higher lows define the trend more than the highs.

Mastery check

Mastery check · 1 of 2

What structure defines an uptrend?

Takeaways

Uptrend = higher highs + higher lows.
The higher low is the real evidence of buyer control.
Respect it until a higher low breaks.

Up next — Flip it over for the mirror image. Next: lower highs and lower lows.