Teaching sketch. It shows the shape, not a live quote and not a trade signal.
Definition
A higher low is a pullback that stops above the previous pullback. Buyers defended a more expensive price. Together with higher highs, higher lows are the uptrend. A higher low without a higher high is a possible base, not yet a trend.
How to identify it
Mark swing lows with the same rule you use for highs. Compare the latest completed pullback with the one before it. An intrabar dip that does not close through the prior low can still be a higher low if your rule uses closes.
Bullish reading
The last higher low is the structural stop for trend longs. While it holds, the uptrend's pullback logic is intact.
Bearish reading
A close under the last higher low breaks the sequence. That is the first half of a trend change. A lower high afterward completes the shift to a down rhythm.
Common mistakes
Moving the "higher low" down after price breaks it, so the trend is never allowed to fail.
Limitations
In a spike, the last higher low can be far away. Structure then gives a correct but oversized stop. That is a position-size problem, not a reason to pretend the low is closer.
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.