Higher highs, higher lows
Uptrend: HH and HL
An uptrend keeps making higher highs (HH) and higher lows (HL). Each pullback stops above the last one. As long as the most recent higher low holds, the uptrend is intact.
Remember: Bullish = price pushing up. Bearish = price pushing down.
Downtrend: LH and LL
A downtrend makes lower highs (LH) and lower lows (LL). If price makes neither, it is ranging: bouncing between a ceiling and a floor.
Test yourself
What structure is this?
Bullish: higher highs and higher lowsEach high is above the last and each pullback stops higher. That is bullish structure.
What structure is this?
Bearish: lower highs and lower lowsEach rally fails lower and each drop goes deeper. That is bearish structure.
What structure is this?
Ranging: price bounces between the same high and lowHighs and lows keep forming at similar prices. Neither side is in control.
In an uptrend, which point must hold for the trend to stay intact?
The most recent higher lowIf price closes below the last higher low, the pattern of higher lows is broken.
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