How to Identify Genuine Higher High Lower Low Pattern

We analyse Uptrend Price Movement to identify genuine Higher High Higher Low pattern in this chapter
"higher high higher low pattern" is a chart pattern that implies upward movement of price. This Higher High Higher Low pattern forms with series of Impulsive and Corrective Move. In an uptrend, there will be an impulsive price wave and then followed by a corrective price movement. This Impulsive move create Higher High price point and Corrective move create Higher Low Price Point.

 There are mainly two rule for a genuine uptrend that is Higher High Higher Low Pattern
  1. Impulsive Move must be larger than Corrective Wave
  2. Corrective wave should not break previous Higher High (Which is support area)

Impulsive Move must be larger than Corrective Wave
Generally, In a clear upward price pattern or Higher High Higher Low Pattern, Impulsive Move Must be bigger than Corrective Move. if corrective move is larger (or wider) than an impulse move, we can say that the higher high higher low pattern broken. Means the ongoing up trend of a stock is ended at least for a while.

 Corrective wave should not break previous Higher High
In a Genuine uptrend, Previous Higher High Price Point will act as strong support area. Corrective waves must not break this support for trend continuation. If it breaks, we can say Current trend is ended at least for a while. The higher High Higher Low Pattern will be broken if corrective wave break the support previous higher high.

  Here is the Trading strategies in this Higher High Higher Low Pattern

Combine Trendline with Higher High Lower Low Pattern Pattern to Identify genuine Pattern.



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