- **Definition**: - In technical analysis, a "higher high" refers to a peak in the price of an asset that surpasses the previous highest peak.
- **Indicator of Upward Momentum**: - Signifies an upward trend in the price of the asset. - Typically seen as a bullish indicator by traders and analysts.
- **Interpretation**: - Indicates increasing buying pressure and positive market sentiment. - Implies potential for further price appreciation in the short term.
- **Usage**: - Traders often use higher highs to identify bullish trends and make buy decisions. - Confirmation from other indicators like increasing trading volume strengthens the bullish signal.
- **Strategy**: - Capitalizing on higher highs involves buying the asset with the expectation that the upward momentum will continue. - Setting stop-loss orders to manage risk in case the trend reverses.
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