Trends/Trend strength and direction

Higher highs and higher lows

A series of swing highs and swing lows that each sit above the one before.

Trend strength and directionBest on 3M, 6M, 1YAlso called uptrend structure

Illustration of the higher highs and higher lows shape. It is a sketch, not real price data.

What it shows

The oldest definition of an uptrend, from Dow Theory, is a sequence of higher highs and higher lows. Each rally goes above the last rally's high and each dip stops above the last dip's low.

We find swing points and count the series.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

Find swing highs and lows (5 bars each side).
Compare each swing high with the one before.
Compare each swing low with the one before.
Count the consecutive higher highs and lows.

Starting values: Swing 5 bars each side. These are proposed and will be tuned on real price data before launch.

How to read it

Teal dots are swing lows. Red dots are swing highs.
Each is above the previous one.
The steps climb.

Status labels you may see

Label	What it means
Intact	Last two swing highs and lows each higher.
Broken	Last swing low is below the one before.
Unclear	Mixed.

What cancels it

Broken when a swing low is below the previous swing low.

What traders check next

Number of steps.
Size of the dips.
The most recent low.

Limits

Swings are defined after the fact.
Swing size is a choice.
Says nothing about the future.

Try it in forecastviz

Open any ticker and choose Trend strength and direction → Higher highs and higher lows in the left menu.
Switch between 3M, 6M, 1Y to see how the picture changes.
Compare with Lower highs and lower lows and Uptrend line on the same chart.

Open on a ticker

Questions

Who defined it?

Charles Dow, around 1900.

What breaks it?

A lower low.