The point, in between, that I referenced confirms B. Otherwise B can turn out to be just another short term swing low and a continuation of the prior move lower. Of course waiting for the in between point to be cleared gives more certainty but less available potential profit. Everything is a tradeoff - more risk, more potential profit or less risk, less potential profit.
What's the verdict? In the chart below, when price fell below B it may have become relevant for those who set stops according to B.
"What exactly happens at a Higher Low?" To hear Tom O'Brien tell it - "price is in an exploration to see if they can knock the top out of it. If they can't knock the top out of it - guess what, they go see if they can knock the bottom out of it. Rinse. Repeat." Under that explanation - at a higher low, "they couldn't knock the bottom out of it, so they go see if they can knock the top out of it." The chart above seems to conform to that model pretty well. "What happens at B?" More buying than selling? ? ?
Well, the confusing part still is: existing buyers are looking for higher prices new buyers are looking for lower prices existing sellers are looking for lower prices new sellers are looking for higher prices And what's the main reference point in my pic: A and/or B and/or the peak in between point A and point B? I like your AAPL chart and the O'Brien quote; it opens a new idea for me, so thanks.
Some new buyers are looking for lower prices and .... some new sellers are looking for higher prices. Mostly the losing type.
It's actually remarkable when you see this happening. It doesn't happen all the time (for example, a big buyer comes in at market) but when things are balanced, it's really happening!