Higher Low (HL)

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Luca

Table of Contents

Introduction

The Rise Within Structure

A Higher Low isn’t random, it’s refined order.
It’s the point where buyers defend structure,
where the market breathes in before pushing higher.

The Higher Low is more than a dip,
it’s proof that Smart Money still holds control.
It’s structure confirming strength.

What Is A Higher Low?

The Definition:

📊 A Higher Low (HL) forms when price makes a low
that’s above the previous one,
signaling sustained bullish intent.
It’s the visual confirmation
that structure is building, not breaking.
💬 In simple terms:
A Higher Low is a market recharge,
its a reset before continuation.

📍 It’s the market saying,
“I’m still bullish.”

Why Higher Lows Matter

Smart Money doesn’t chase highs, they defend lows.
The Higher Low matters because it:

  • Confirms bullish structure in motion.
  • Defines logical re-entry zones within a trend.
  • Marks institutional defense points (OBs, FVGs).
  • Offers data-driven confirmation of control.

💡 The Higher Low is where fear fades and conviction begins.

How To Trade Higher Lows

1️⃣ Identify the bullish impulse leg.
2️⃣ Mark the previous structural low.
3️⃣ Wait for retrace into premium discount zones.
4️⃣ Confirm HL formation with rejection or CHoCH.
5️⃣ Enter only on structure continuation.

 📍 Smart Money trades defense, not hope.

Example

Higher Low In A Bullish Trend

Price rallies strongly, leaving imbalance below.
It retraces into the FVG,
forms a rejection candle,
and holds above the previous low.
Then displacement resumes upward.

 💬 Retail calls it a pullback.
Smart Money calls it confirmation of control.

The Do Nots

Common Mistakes Traders Make

❌ Entering too early before structure confirms.
❌ Confusing HL with short-term noise.
❌ Ignoring liquidity sweeps before the HL forms.
❌ Failing to record recurring structure reactions.

💬 Patience turns the HL from a guess into confirmation.

Final Thoughts

A Higher Low is not just structure, it’s conviction.
It’s Smart Money refueling quietly
before the next move higher.
Study it.
Journal it.
Trade it when it confirms.
Because Smart Money doesn’t predict Higher Lows,
they build them.