Lower High
A swing high that fails to reach the previous swing high, showing weakening demand.
Also called: lh
In plain language
A lower high means each rally is running out of steam sooner. Sellers are meeting buyers at progressively lower prices.
In a downtrend, lower highs are where short entries with defined risk appear — the stop sits just above the failed rally.
The first lower high after a sustained uptrend is an early warning, though it becomes meaningful only when a lower low follows.
Seen on a chart
Why it matters
Lower highs provide the reference level a short trade’s stop is built above, which is what makes the position sizable in the first place.
Common mistakes
- Shorting the first lower high in a strong uptrend without further confirmation.
- Ignoring lower highs while holding a long because the trend "still looks fine".
Keep exploring
These concepts are connected. Understanding one usually makes the next one easier.
A swing low that breaks below the previous swing low, confirming downward momentum.
The pattern of highs and lows that describes whether a market is trending or ranging.
A sustained directional bias in price, built from a repeating pattern of highs and lows.
A peak with lower highs on both sides — a local turning point in price.
A position that profits when the price falls.