In practice
This sequence is the working definition of a downtrend. While it holds, traders favour short trades and look to sell the rallies, with the most recent lower high as the level sellers must defend.
A close above that lower high is the first sign the downtrend may be ending, and each new lower high gives a place to trail a stop on a short.
What to watch for
Downtrends are often sharper than uptrends and their rallies can be fast. Buying because price has fallen a long way, with lower highs still printing, is trading against the only evidence on the chart.