Why Higher Highs & Higher Lows Matter in Trading

One of the easiest ways to identify an uptrend is by looking for Higher Highs (HH) and Higher Lows (HL). What does it mean? 🔹 Higher High (HH): Price moves above its previous peak, showing buyers are willing to pay higher prices. 🔹 Higher Low (HL): After a pullback, price finds support above the previous low, indicating buyers are stepping in earlier. When a stock continues to make Higher Highs and Higher Lows, it reflects strong buying interest and increasing bullish momentum. Instead of chasing every rally, many traders wait for the price to pull back and hold a Higher Low, as it often provides a better risk-reward entry. Example: (I have attached Adani Energy Solutions chart (

) below for your reference.) In the chart, the stock continues to form Higher Highs and Higher Lows while respecting an ascending trendline. This suggests buyers remain in control and the broader trend is intact. 📌 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.