First: Definition of the four symbols
1๏ธโฃ HH โ Higher High
๐ Higher high than the previous high
โ
Indicates:
Strong upward trend
Buyers' dominance
Tops expanding upwards
๐ก How to trade?
Enter buy after each retracement to support or HL.
Do not look to sell against this trend.
2๏ธโฃ HL โ Higher Low
๐ Higher low than the previous low
โ
Indicates:
Continuation of the upward trend
Buyer pressure prevents the price from breaking the lows
๐ก How to trade?
The best buying areas are at the formation of HL
Stop loss below the new low
โ
HH + HL Result
If you see the market creating:
HH then HL then HH then HL
๐ This means:
Very healthy upward trend
Excellent buying opportunity with every retracement
The downward trend
3๏ธโฃ LL โ Lower Low
๐ Lower low than the previous low
โ Indicates:
Downward trend
Sellers are in control
๐ก How to trade?
Selling from LH areas
Stop loss above the previous high
4๏ธโฃ LH โ Lower High
๐ Lower high than the previous high
โ Indicates:
Rise failure
Weakness of buyers
๐ก How to trade?
Selling from LH areas is the safe method
Do not enter a buy while LH is present
โ LH + LL Result
When you see:
LH then LL then LH then LL
โ ๏ธ This means:
Strong downward trend
Excellent selling opportunities
Buying is very risky
๐ฅ The most important professional point
It's not just the symbol that matters, but their sequence:
โ
Strong rise:
HH โ HL โ HH โ HL
โ Strong decline:
LH โ LL โ LH โ LL
โ ๏ธ Beginning of a reversal:
HH โ LH โ LL
Or
LL โ HL โ HH
๐ง The smart summary for the professional trader
The state
Market interpretation
Higher lows + Higher highs โฆ Rise and continued buying
Lower highs + Lower lows โฆ Decline and continued selling
Lower highs after higher highs โฆ Trend weakness and potential reversal
Higher low after lower lows. โฆ
Beginning of a new rise
๐ฏ How to use this practically?
โ
Best simple strategy:
Wait for trend determination from the sequence.
Trade only in its direction.
Entry from:
HL in the upward trend
LH in the downward trend
Stop loss:
Below HL in buying
Above LH in selling
