2. HH, HL, LH, LL – the four labels
Every swing gets one of four labels, by comparing it with the previous swing of the same type:
| Label | Means | Compare with |
|---|---|---|
| HH – Higher High | This peak is above the last peak | Previous swing high |
| HL – Higher Low | This valley is above the last valley | Previous swing low |
| LH – Lower High | This peak is below the last peak | Previous swing high |
| LL – Lower Low | This valley is below the last valley | Previous swing low |
Then the trend reads itself:
- HH + HL, again and again → uptrend.
- LH + LL, again and again → downtrend.
- Mixed, or equal highs and lows → range or transition.
2.1 Label it yourself
Press "Next swing" and read the explanation at each step. Watch carefully what happens near the end.
Did you notice the story? The trend was healthy – HH, HL, HH, HL. Then came a lower high: buyers could not reach a new peak. Then a lower low: sellers broke the last valley. In just two swings, an uptrend turned into the beginning of a downtrend.
Think of a batsman’s scores over five matches: 45, 52, 61, 70, 78. Each score is higher – he is in form (uptrend). Then: 64, 50. The 64 is still decent, but it is lower than 78 (a lower high). The 50 is below his previous low of 61 (a lower low). Selectors start worrying.
You don’t need one terrible innings to see form dropping. You need to see the sequence change.
2.2 Important rules for labelling
- Use closes for confirmation. A wick that pokes slightly below the last low and closes back above it is often not a real lower low.
- Major swings first. Label the obvious waves. Ignore tiny wiggles inside them.
- One timeframe at a time. The daily chart can be HH-HL while the 15-minute is LH-LL. Both can be true (more in Chapter 5).
Yeh labelling roz practice karo – 10 charts a day for two weeks. Draw small HH/HL/LH/LL labels with your charting tool. After that, your eyes will do it automatically, and you will never look at a chart the same way again.
A peak below the previous peak is a Lower High – the first warning in an uptrend.
Lower highs and lower lows mean sellers are in control.
- Label peaks as HH or LH; label valleys as HL or LL.
- HH + HL = uptrend. LH + LL = downtrend. Mixed = range or transition.
- The first LH is a warning; an LL after it breaks the uptrend structure.
- Confirm with closes, label major swings, and stay on one timeframe at a time.
- Ek line mein: HH-HL matlab buyers ka raaj, LH-LL matlab sellers ka – pehla lower high hi pehli warning hai.