Price behaves like a single organism that moves in cyclical, parabolic patterns: from Higher Highs (HH) to Higher Lows (HL) to Higher Highs again, and from Lower Highs (LH) to Lower Lows (LL) to Lower Highs. Each Higher Low creates new buy orders that are fulfilled, leading to the formation of a new High. Likewise, each Lower High creates resting sell orders that are executed, resulting in a new Low. Once you understand, monitor, and act upon this principle, along with your chosen strategy, you can truly flow with the market's movements rather than against them.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.