Basic Q: Relative Highs & Relative Lows

Feb 20, 2015
I've been learning about the basics of charting, and have come across the concept of spotting upward and downward trends using relative lows and relative highs.

What I am wondering however, is how do you know where to place RLs and RHs?

See attachment for what I mean. (Why could a RL not be placed where I have pointed? If there was a RL there, the uptrend pattern would have been broken earlier, no?)