Teaching sketch. It shows the shape, not a live quote and not a trade signal.
Definition
A higher high is a rally peak above the previous rally peak. It says buyers pushed price into new territory relative to the last swing, not merely relative to yesterday's close. A series of higher highs is half of an uptrend. The other half is higher lows.
How to identify it
Define a swing high as a high with lower highs on both sides, on the timeframe you trade. Then compare it with the prior swing high. A wick can make the higher high. Decide whether you require a close above the old high or only a print.
Bullish reading
Higher highs confirm that demand is still willing to pay up. In an uptrend they are normal. A higher high that immediately fails and closes back under the old high is a possible bull trap.
Bearish reading
One higher high does not end a downtrend. A downtrend ends its high sequence only when a rally breaks the last lower high. Do not confuse a higher high inside a range with a trend change.
Common mistakes
Marking every candle high as a swing. If you zoom in far enough, everything is a higher high.
Limitations
The label depends on the swing filter. A 5-bar swing and a 20-bar swing will disagree. State the rule.
This note explains the term. A sketch shows the shape of the idea. Neither is a recommendation, a signal, or a comment on any security. Indicator settings and exchange conventions differ. Check the live chart and the contract specification before you use a number.