Higher Low

Higher Low (HL) is a term used in technical analysis of the cryptocurrency market and other financial markets to describe an upward pattern in the price of an asset. It represents the lowest point reached by the price during an uptrend that is higher than the previous low.

On a price chart, a Higher Low is formed when the price falls during a correction in an uptrend, but the lowest point of the fall is higher than the previous low. This pattern indicates that buyers are willing to enter the market at higher prices, suggesting underlying strength in the uptrend.

Example:

Let's say the price of Bitcoin has been steadily rising for several weeks. During this period, the price experiences some downward corrections, but in each correction, the price reaches a level higher than the previous low. These higher lows form Higher Lows and confirm the underlying uptrend.

Case:

Traders and technical analysts use Higher Lows as confirmation signals of a developing uptrend. When Higher Lows are consistently formed, it suggests that buying demand is strong and investors are willing to buy assets even when the price temporarily corrects. This can provide opportunities to enter long positions in the market.