The lower highs concept refers to a market structure where each successive price high is lower than the previous high, indicating that buyers are losing strength and sellers are gaining control. This pattern reflects persistent selling pressure, as rallies fail to break prior highs, and it commonly appears in downtrending markets or during trend reversals from bullish to bearish. Lower highs often act as dynamic resistance and, when combined with lower lows, confirm a strong bearish trend and increasing downside momentum.