What is a Lower Low (LL)?

What is a Lower Low (LL)?

A lower low occurs when price breaks beneath the prior swing low. It confirms that sellers now control the market, extending the downtrend.

Reading Lower Lows

• Bearish structure: Lower lows combined with lower highs define a downtrend.
• Stop runs: Liquidity beneath obvious lows can trigger sharp continuation moves.
• Momentum gauge: Shallow new lows warn that selling pressure is losing steam.

Trading with Lower Lows

• Map potential targets using prior structure, measured moves, or average swing length.
• Use pullbacks to the last lower high as entries with attractive risk/reward.
• Lock in profits with trailing stops just above minor swing highs.
• Plan exit criteria in advance—violent short squeezes often follow extended series of lower lows.

Practical Playbook

• Define context on higher timeframes, then execute on intraday charts.
• Wait for confirmation (acceptance, momentum, or confluence) before entry.
• Size positions conservatively and place stops at clear invalidation levels.
• Adapt to session dynamics; conditions shift between Asia, London, and New York.

Common Pitfalls

• Forcing trades without alignment across timeframe, structure, and catalyst.
• Ignoring spreads/slippage during news or thin liquidity.
• Moving stops or adding to losers instead of honoring the plan.

Illustrative Example

Build a simple playbook: identify bias, mark key zones/levels, define triggers and invalidation, and pre‑set targets for 2–3R. Journal results by session and setup to refine rules. Over time, consistency—not prediction—drives outcomes.

Practical Playbook

• Define context on higher timeframes, then execute on intraday charts.
• Wait for confirmation (acceptance, momentum, or confluence) before entry.
• Size positions conservatively and place stops at clear invalidation levels.
• Adapt to session dynamics; conditions shift between Asia, London, and New York.

Common Pitfalls

• Forcing trades without alignment across timeframe, structure, and catalyst.
• Ignoring spreads/slippage during news or thin liquidity.
• Moving stops or adding to losers instead of honoring the plan.

Illustrative Example

Build a simple playbook: identify bias, mark key zones/levels, define triggers and invalidation, and pre‑set targets for 2–3R. Journal results by session and setup to refine rules. Over time, consistency—not prediction—drives outcomes.