Lower High
A rally peak that fails to reach the prior swing high — the second structural requirement of a defined downtrend.
A lower high forms when a relief rally fades before taking out the prior peak. It signals that sellers are willing to distribute at progressively lower prices — buyers lack the conviction to push through prior resistance. Combined with lower lows, it defines a downtrend.
In a declining market, the first significant lower high after a long uptrend is often the earliest warning that the uptrend is in trouble — before a lower low has even formed.
Related Terms
Downtrend
A market structure defined by lower highs and lower lows, reflecting sustained selling pressure.
BeginnerHigher High
A peak that exceeds the prior swing high — one half of the structural definition of an uptrend.
BeginnerLower Low
A trough that undercuts the prior swing low — one half of the structural definition of a downtrend.
BeginnerReversal
A sustained change in the direction of the prevailing trend, not just a temporary counter-move.
IntermediateSwing High
A candle or bar whose high is higher than both the preceding and the following candle's highs — a local price peak.
BeginnerTrend
The persistent directional bias of price over a defined timeframe — up, down, or sideways.
Beginner