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Higher-low, higher-high


In technical analysis, an upward trending asset typically sets higher lows and higher highs.

The way this works is that the price rises, setting a new high (higher-high), then drops as traders take profits, but this drop doesn’t cause the price to fall lower than the previous low (higher low).

Once this new higher-low is set, the buying continues, sending the price back up and setting a new higher-high.

This typically looks like a zig-zag pattern that moves diagonally upwards.

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