Most traders lose because they don’t understand one thing:
Market Structure.
Here’s how trends actually work 👇
🔻 Lower High (LH)
Price tries to go up…
But fails to break the previous high.
Example:
High = $40
Next rally = $35
That $35 is a Lower High.
When you see:
LH → LL → LH → LL
That’s a downtrend.
Sellers are in control.
🔺 Higher High (HH) + Higher Low (HL)
This is what an uptrend looks like.
Example:
Low = $20
High = $30
Pullback = $25 (Higher Low)
Next push = $35 (Higher High)
That confirms buyers are in control.
📌 Simple rule:
Downtrend = Lower High + Lower Low
Uptrend = Higher High + Higher Low
If you’re longing in a Lower High structure…
You’re trading against trend.
Trade structure.
Not hope.