Safe Haven vs. Digital Gold: The 2026 Outlook for Gold and Bitcoin
HH (Higher High): When the price moves above the previous highest point (High) and creates a new peak.
HL (Higher Low): When the price pulls back but does not break the previous lowest point (Low), staying above it.
LH (Lower High): When the price tries to move up but fails to reach or break the previous High, staying below it.
LL (Lower Low): When the price drops below the previous lowest point, creating a new record low.
SMC Logic: When the price breaks the previous HH, it is called a "Break of Structure" (BOS). Smart Money traders wait for a Higher Low (HL) to form before entering a "Buy" position at a lower price.
SMC Logic: Here, the price breaks the previous LL to continue its downward journey. Smart Money usually enters "Sell" positions at a Lower High (LH) because the probability of the price dropping further is very high.
Sometimes the market moves neither up nor down but stays within a specific boundary (Range). This is called Consolidation. SMC traders generally avoid trading in such markets and wait for the structure to break (BOS) in either direction before making a move.
Trend Identification: It tells you the actual "bias" or direction of the market.
Entry Points: it helps you find the right spots to "Buy Low and Sell High."
Risk Management: If the market changes its structure (e.g., an HL is broken in an uptrend), it is a warning that the trend is about to reverse.
Important Note: Understanding HH, HL, LH, and LL is just the first step in SMC. In the next part, we will learn about BOS (Break of Structure) and CHoCH (Change of Character) so you can identify the exact moment the market turns.
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Global Markets Analysis | Crypto | Commodities | Macro Economy
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