Interesting!
Is the location of point B still relevant...?
What exactly happens at a Higher Low?
- Thread starter Onra
- Start date
Is the location of point B still relevant...?
The point, in between, that I referenced confirms B. Otherwise B can turn out to be just another short term swing low and a continuation of the prior move lower. Of course waiting for the in between point to be cleared gives more certainty but less available potential profit.
Everything is a tradeoff - more risk, more potential profit or less risk, less potential profit.
What's the verdict?Price goes up, but the retrace doesn’t hit a Double Bottom.
Technically we’re now in an uptrend; meaning the sellers are in control…
Apparently no trades take place below the Higher Low.
We’re dealing with buyers who bought earlier and new ones stepping in.
And also sellers holding positions or unloading…
I’m getting confused (as you can tell)
Who, with more brainpower, can explain this in simple language?
Thanks!
In the chart below, when price fell below B it may have become relevant for those who set stops according to B.
Price goes up, but the retrace doesn’t hit a Double Bottom.
Technically we’re now in an uptrend; meaning the sellers are in control…
Apparently no trades take place below the Higher Low.
We’re dealing with buyers who bought earlier and new ones stepping in.
And also sellers holding positions or unloading…
I’m getting confused (as you can tell
Who, with more brainpower, can explain this in simple language?
Thanks!
"What exactly happens at a Higher Low?"
To hear Tom O'Brien tell it - "price is in an exploration to see if they can knock the top out of it. If they can't knock the top out of it - guess what, they go see if they can knock the bottom out of it. Rinse. Repeat."
Under that explanation - at a higher low, "they couldn't knock the bottom out of it, so they go see if they can knock the top out of it."
The chart above seems to conform to that model pretty well.
"What happens at B?" More buying than selling? ? ?
Well, the confusing part still is:
- existing buyers are looking for higher prices
- new buyers are looking for lower prices
- existing sellers are looking for lower prices
- new sellers are looking for higher prices
A and/or B and/or the peak in between point A and point B?
I like your AAPL chart and the O'Brien quote; it opens a new idea for me, so thanks.
It's actually remarkable when you see this happening. It doesn't happen all the time (for example, a big buyer comes in at market) but when things are balanced, it's really happening!
Why is that confusing?
Apparently there's a difference between "buyers" and "sellers" themselves.
Why do you say that?