Don't buy every dip. First understand Lower Highs & Lower Lows. 📉

One of the easiest ways to identify a downtrend is by spotting Lower Highs (LH) and Lower Lows (LL). Here's how it works: 🔹 Lower High (LH): Every rally fails to cross the previous high. Sellers step in earlier each time. 🔹 Lower Low (LL): Price falls below the previous swing low, confirming that sellers remain in control. When LH and LL keep repeating, the trend is bearish. Many traders try to catch the bottom, but until this structure changes, the probability favors the downside. Example: I have attached Alkylamine Chemicals (

) chart for your reference. The stock stayed in a clear Lower High–Lower Low structure for several months. Every bounce was sold into, creating a falling channel. Only after price started breaking this pattern and closed above the falling trendline did the probability of a trend reversal improve. 📌 Remember: No pattern works every time. Always combine price action with proper risk management and stop-loss. This post is for educational purposes only and not investment advice.