Higher highs and higher lows
What does it mean when a market keeps making higher highs and higher lows, and why is that called an uptrend?
In plain words
Higher highs and higher lows describe a market in which each peak reaches above the previous peak, and each pullback stops at a level above the previous low. The pattern of rising peaks and rising troughs is the everyday definition of an uptrend.
Why it matters
Traders use this sequence to tell a rising market from a single sharp jump. It suggests demand is strong enough to absorb selling at progressively higher prices, and it frames where a pullback might be considered abnormal, which matters for sizing and risk placement.
In a real week: BTC, week of 13 May 2019
In the week of 13 May 2019, BTC opened at 6968.24 and set its low of 6870.0 at 00:00 UTC on Monday, then its high of 8366.0 at 08:00 UTC on Tuesday, closing at 8148.48, up 16.94%. The four prior weeks were all up: 2.43%, 0.95%, 8.77% and 20.68%.
A common mistake
Treating the pattern as permanent. Higher highs and higher lows describe the path so far; a single week that breaks the sequence can end the description without ending the longer rise.