Targets & magnets Both
Prior high or low as a vacuum magnet
Trend approaching an obvious prior extreme. Opposition may pause while the market tests the level.
Read the sequence.
01 / OBSERVE → DECIDE
- ContextTrend approaching an obvious prior extreme
- PressureOpposition may pause while the market tests the level
- SetupTrend approaching an obvious prior extreme. Require rejection or acceptance at the marked structure.
- DecisionContinuation only with room; reversal only after failure
The decision map
02 / QUICK REFERENCE- Location
- Trend approaching an obvious prior extreme.
- Evidence
- Opposition may pause while the market tests the level.
- Trigger
- Continuation only with room; reversal only after failure.
- Invalidation
- Failure of the chosen continuation or reversal structure.
- First objective
- Prior high or low.
- Pass when
- Fading a strong move simply because it approaches a prior extreme.
03 / THE FULL ARGUMENT
Thesis & participant logic
Supplied study draft · adapted Brooks-style prose, not a quotation from Al Brooks
Price is close to an obvious prior high, and bears may step aside because a test is likely. I will not short prematurely merely because the market appears overextended. I may trade toward the magnet if trend pressure remains strong. I will consider a reversal only after the test produces rejection, failure and confirmation.
Mirror this when price approaches a prior low.
04 / FROM IDEA TO A PLAN
Manage the thesis, not the need to be right.
Before entry
Write the structural invalidation and first realistic objective. Size to the loss you have already accepted, including costs and possible slippage. If the stop is unaffordable, reduce size or pass.
After entry
Reassess follow-through against the evidence above. Do not widen the stop or add because price “has gone too far.” A bounce to your average entry is not a market thesis.
At the objective
Prior high or low. Decide ahead of time whether to exit or retain a defined remainder. Continue only while structure and follow-through support the trade.
During review
Record the entry-time chart, planned risk, maximum adverse excursion, actual exit, and whether the thesis was invalidated. Judge the decision separately from the outcome.