Higher high (HH) and higher low (HL)

Example

Suppose a stock’s last trough was $51.00 and its last peak $58.00. It then pulls back to $54.00 and rallies to $61.00, printing a higher low ($54.00 above $51.00) and a higher high ($61.00 above $58.00). If the next dip holds at $57.00, that is another higher low; a drop to $53.00, below $54.00, would break the pattern.

Hypothetical numbers, for illustration only.