What is a Higher Low (HL)?
Higher Low (HL)
Forex Trading Glossary
Quick Answer: A higher low appears when a pullback bottoms above the previous low, reinforcing bullish structure and providing logical stop locations.
What is a Higher Low (HL)?
A higher low forms when a pullback stops above the previous low in an uptrend. It shows buyers stepping in sooner, reinforcing bullish structure.
Role of Higher Lows
- Structure definition: Higher highs plus higher lows confirm trend progression.
- Risk anchor: Higher lows give logical locations for protective stops.
- Accumulation signal: Shrinking pullbacks hint at demand overwhelming supply.
Patience Pays
Wait for confirmation that the pullback has ended—such as bullish candles or volume returning—before labeling a level a true higher low.
Trading with Higher Lows
- Use higher lows to draw trendlines that visualize channel support.
- Scale into positions when price retests a prior higher low and holds.
- Measure distance between lows to gauge trend acceleration or fatigue.
- Re-evaluate bias if price closes below the latest higher low—structure may be shifting.
Related Terms
Learn More About Forex Trading
Now that you understand higher low (hl), explore our comprehensive guides: