Lower high / Lower low
The structural pattern of a downtrend: each peak lower, each trough lower.
Lower highs and lower lows, in sequence, and sellers hold the pen. Every rally gets sold earlier than the last one, every low goes deeper. While that holds, the job is to find continuation entries into the move, not to hunt for the bottom of it.
The break rule mirrors the uptrend exactly. The downtrend is intact until price closes with at least 50 percent of a candle body past the wick of a prior lower high. A wick that pokes above and closes back inside is not a break, it is a wick test, and in a downtrend it is frequently the sweep that funds the next lower low.
### The clue that fires before the structure turns
Momentum shifts before structure does. If price grinds to a fresh lower low while RSI prints a *higher* low, the selling is losing force even though the chart still looks bearish. That is bullish divergence.
It does not flip your bias on its own and you never trade it alone. But it is the condition the system makes mandatory elsewhere: when there is no sweep of protected structure, divergence is required. Non-negotiable. So learning to spot it inside a LH/LL sequence is not optional colour, it is a gate you will have to pass through on live setups.
### When the next lower low fails to arrive
The most useful thing about a downtrend is what happens the moment it stops working. Price pushes at the low, fails to close below it, and rejects.
In this system that failure is not a curiosity, it has a name and a rulebook. The **No Close** model is the entry built for exactly that: a break that was attempted and failed. Its cleaner cousin, **NC+S**, is the same thing with a sweep of the low providing the confirmation, which is why it ranks higher.
One condition though, and it is the one people skip. NC is used pro trend, aligned with the established direction of order flow. It is not a licence to fade every level a falling market pushes into. Failed breaks print constantly, and taking them against the higher timeframe bias turns into trading every model that appears, which is just overtrading with a rulebook stapled to it.
What the failed low does buy you, always, is a reason to stop pressing. Adding into a downtrend that has already failed to take its low is how you become the person the reversal is trading against.
*Module 9, Lesson 9: No Close Model (NC), and Lesson 10: No Close Plus Sweep (NC+S).*
Learn to actually use Lower high / Lower low.
Definitions are the easy part. The free first five modules put this on a real chart and make you do the work. No card required.