The problem with that logic is that what is low can always go lower (down to zero of course), and what is high can always go higher. That's why you have momentum traders.
I was expecting someone will say what you just did
no, low will never go lower.....buyers buy low.
I do not mean to demean you but you have wrongly assessed the meaning of low and high.
it took me 13 years of trading to figure out what is low and high.
what you think or consider as 'low' is not low......
If a commodity falls to a price unseen for the last 5 years... would you consider this price low? or high?
What about GC, which just closed at like a 7 year high? Teehee!
Do you think that GC will make an ATH without first getting HUGE smacks from all the resistance levels on the way there? We are talking about trading here, not predicting where price will be in 5 months or 5 years. You see a level that was significant in 2011 - 2013, if momentum starts to slow down on approach, they gonna smack it.
A level like 1640s.. for instance.
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depends on how it has fallen
it is market structure that determines what is high or low
not the common man's or mathematician's determination of arithmetic high and low
yep any weakness however small will be pounced upon.....that is the way of the jungle and that is the way of the market jungle
Absent any other information, low and going lower.
there is always other information
without chart nothing sensible can be said.