A higher high is when the price of a cryptocurrency closes higher than the previous day, which itself closed at a high.
What Is a Higher High?
A higher high is when the price of a cryptocurrency closes higher than the previous day, which itself closed at a high. For example, a cryptocurrency may close with a 2% profit on one day and a 3% profit on the next day. This would be considered a higher high since one profitable day is followed by another profitable day. A higher high can be indicative of a rising trend and give traders a reason to enter buying positions.
Is a Higher High Bullish?
If, on the other hand, a higher high in prices is accompanied by higher highs on technical indicators, this can be considered a bullish sign.
How Do You Trade a Higher High?
Depending on the trend, there are multiple ways to trade a higher high. For example, if the price is in an uptrend, and the first high is followed by a higher high, it depends on the next price move. A lower low would indicate a sell and a lower high would indicate a buy. Traders would sell when the price reaches the previous first high after setting a lower low. If the price prints a higher low, traders would buy the higher low to ride the uptrend further.
Also Read: How to Use Stop Loss and Take Profit in Trading?