Trading
Lower Low
A trough that falls below the previous trough in a downtrend.
Full Definition
A lower low occurs when price reaches a new trough that is lower than the previous trough. It's a key characteristic of a downtrend and indicates selling pressure is pushing prices lower. Consecutive lower lows confirm bearish trend strength.
Example
Price bottoms at 1.1000, bounces, then makes a new low at 1.0950. This lower low confirms the downtrend is intact.
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