Weak High / Weak Low
A high that fails to take out the corresponding low (or a low that fails to take out the corresponding high) — indicating the level lacks conviction and is likely to be broken
A weak low is created when price pushes up from a demand zone but fails to take out the most recent swing high above it. The demand "tried" to reverse price but didn't have enough conviction to reach its target. This makes the low vulnerable — it lacks the strength to hold on a retest. Conversely, a weak high is created when price drops from supply but fails to take out the swing low below. For trade management, weak highs and lows are critical signals. If you're in a short trade and the demand zone below creates a weak low (doesn't reach the high), the demand has failed — don't take profits there. The low is "toast." If a demand creates a strong low (takes out the high with conviction), that's when you should consider managing your trade. This concept helps you decide whether to hold through a level or close at it.
✓How to Recognize
- •A weak low fails to take out the high above — the demand lacks conviction, expect the low to break
- •A weak high fails to take out the low below — the supply lacks conviction, expect the high to break
- •Use weak/strong classification to decide whether to take profits at a zone or hold through it
- •Multiple weak lows stacking up creates a strong bearish signal — supply is clearly in control
⚡How to Avoid
- →Taking profits at weak lows when you are short — the low will likely get broken
- →Buying from a demand zone that just created a weak low — the zone has proven itself weak
- →Selling from a supply zone that just created a weak high — the zone has proven itself weak
- →Ignoring the weak/strong classification when managing with-trend trades