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One of the most important signals in trend trading is the "structural breakout."
In simple terms, it means that the price has surpassed the previous high and no longer falls back to break that level; only then can we say that the market has truly given you a new direction.
The trend of "higher highs and higher lows" is the most typical trend rhythm. Once the price breaks through the previous high, retests without breaking it, and then makes another move up, that is a confirmation signal.
The practical approach is very simple:
After breaking through the previous high, I won't chase right away, but will wait for a pullback to see if it holds.
If it can hold, then the previous high will serve as support. Try to follow up and set the stop loss below the structural breakout point.
If the price keeps rising afterwards, gradually adjust the stop-loss using the previous low point and go along with it.
The significance of a structural breakthrough lies not only in the fact that "it has started to rise," but in the completion of the turnover of previous holdings and the attainment of market consensus on a new direction.
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