The Pre-Break High

Position Management after the entry triggered...

First one out on the subject of position management.

“Price tends to react from the last pre-break high.” - basic support/resistance flipping in terms of price action.

Let me demonstrate: when price breaks an entry, it runs stops as much as it has traders enter positions. The initial break out is always volatile and when buying exhausts, it finds a local high. This is called a pre-break high. The actual break out attempt happens when price makes a higher high above the previous swing high, which I have marked with my ‘box’.

So in line with my instruction on How to Find Levels, where I show you how to draw the boxes, here is an example. Price formed a DEM and breaks out inside the structure.