Lower Highs And Lower Lows Pattern Trading Strategy (Setup and Backtest Analysis Dynamics)
In almost all markets, the lower high and lower low pattern signals a short-term reversal. We develop multiple lower high and lower low trading strategies.
We describe the trading rules both in plain English and by using a chart (Shown below)
The chart has two lower highs and lows in a row (lower high and low candlestick). The second candlestick marks a pretty strong reversal. As you’ll see in this article, this is a short-term reversal pattern. If you are familiar with technical analysis, you might argue that the pattern could be similar to a “wedge”.
You can find more info about this trading strategy here:
https://www.quantifiedstrategies.com/lower-highs-and-lower-lows-pattern/