#ReversalStrategy

[quantifiedstrategies]

LOWER LOWS AND LOWER HIGHS PATTERN

The "Lower Lows and Lower Highs" pattern is a chart formation where consecutive lower highs and lower lows suggest a short-term reversal. One trading strategy involves entering at the close when a daily bar shows both a lower high and a lower low, with an exit after 1-10 bars. Another strategy enters after two consecutive days of lower highs and lows for stronger confirmation. This pattern is often used to identify potential reversals in trending markets.