Lower high (LH) and lower low (LL)

Example

Say a stock falls from a $90.00 peak to $80.00, bounces 7% to $85.60, then drops to $77.00. The bounce top at $85.60 is a lower high and $77.00 is a lower low, so the downtrend is intact even though a 7% rally felt strong. Only a move above $85.60 would break the run of lower highs.

Hypothetical numbers, for illustration only.