Higher low意思

"Higher low" is a term used in technical analysis, which is a branch of finance that studies price movements and market trends. It refers to a situation where the price of a stock, commodity, or any other asset is forming a series of lows on its price chart that are successively higher than the previous ones.

In other words, a higher low is formed when the price reaches a new low, but then bounces back and does not fall below the previous low. This pattern is considered bullish, as it indicates that the market is gaining strength and that the downward momentum is weakening. Traders often use higher lows as a sign that the market may be bottoming out and that it could be a good time to buy the asset.

Here's an example of how a higher low pattern might look on a stock price chart:

1. The price of the stock falls to a low point, let's call it Low A.
2. The price then rises, but later falls again and reaches a new low, Lower B, which is still higher than Low A.
3. The price rises again, and then falls once more, but the new low, Lower C, is even higher than Lower B and does not go below Low A.

In this scenario, each successive low (B and C) is higher than the last, forming a higher low pattern. This pattern can be used by traders to identify potential buying opportunities, as it suggests that the market is in an uptrend or is about to enter one.