A lower high is a peak on a price chart that is lower than the peak before it. Technical analysts read it as a sign that buyers are running out of strength, because each rally fails to reach the level of the last one. A series of lower highs combined with lower lows is the textbook definition of a downtrend, the mirror image of the higher highs and higher lows that define an uptrend. A first lower high after a long rise is often watched as an early warning that the trend may be turning bearish. Traders spot these points on line or candlestick charts and may use the most recent lower high as a level for a stop-loss. Like other chart patterns, the signal is subjective, depends on the time frame chosen and often fails in choppy markets.
Last updated 13 Nov 2026