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.