What is a Lower High (LH)?
Lower High (LH)
Forex Trading Glossary
Quick Answer: A lower high forms when a rally stalls below the previous swing high, signaling emerging seller dominance in a downtrend.
What is a Lower High (LH)?
A lower high forms when a rally stalls below the previous swing high. It signals that sellers are stepping in earlier, often foreshadowing a downtrend.
Lower High Insights
- Trend confirmation: Lower highs paired with lower lows define bearish structure.
- Supply zones: They frequently align with prior resistance or imbalance areas.
- Momentum shift: Failure to break the old high hints that demand is fading.
Look for Confluence
Combine lower highs with trendline breaks, bearish candlestick patterns, or volume divergence for higher probability entries.
Trading Lower Highs
- Mark each lower high to draw descending trendlines that guide trade direction.
- Enter on retests that respect the lower high and reject the level decisively.
- Trail stops above the latest lower high to manage risk as price cascades lower.
- Reassess the bearish bias if price closes above a prior lower high.
Related Terms
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