📈 Higher Lows, An Important Trick you Should Master 📈
What is the significance of higher lows one can ask. Often, you’d get an answer that higher highs and higher lows are a sign of a trend as per the Dow theory.
That’s absolutely correct, but I am not here to write about Dow theory today, most of you already know about Trends and Higher Highs and Higher Lows, I’m here to discuss an Important observation, so you have another point to add to the Analysis, the next time you analyse a chart.
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Significance of Higher Lows when looking for a setup
The significance of a higher low is nothing but an indication that the stock is constantly showing strength because when we are observing the behaviour of a chart, we need to look for as many confirmations as we can.
These are not considered to be huge signs but these are subtle signs that should not be missed.

What to Observe
Whenever a stock makes a swing low, rallies and pulls back, notice closely if it broke the previous swing low or not. A good chart (Like an Obedient Student) would show signs of Strength a little above the Previous Low without breaking the Lows.

Important Exception
If in case you see a shakeout of any swing low, that is not a violation of the rule, and it is still a very good sign. In fact, it is even better.
Don’t worry, you’ll be reading a thread from me on Shakeout as well, really soon.

When is this More Significant
Whenever we this happen during a Base or during a Flag Formation
Example Ho jaaye ya samajh gaye?
Let's see
Example #1
#Uflex

Example #2
#WABAG
Look at both the charts closely on your own screen to understand this concept even better.
That's it from me today...
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