A higher low is a key concept in an uptrend where each pullback in price stops at a level higher than the previous low, indicating that buyers are stepping in earlier and showing increasing demand. This pattern reflects strengthening bullish sentiment, as the market is unwilling to fall to earlier levels and instead forms a staircase-like structure of rising lows. Traders often use higher lows to confirm trend strength and look for buying opportunities near these pullback zones, especially when combined with other signals like support levels or trendlines, as it suggests the trend is likely to continue upward.