The Tradeskill
Market StructureIntermediate

Protected and Weak Highs and Lows

What protected and weak highs and lows are, how a break of structure creates them, and how traders use them for stop placement and targets.

Library categories

What it means

After a bullish break of structure, the swing low that launched the break is the protected low: if it holds, the uptrend holds. The new high is the weak high: it is likely to be exceeded if the trend continues.

In a downtrend it is the mirror image: the protected high defends the trend and the new low is the weak low.

Why traders use it

The labels tell you where the trend is defended and where it is likely to go. Stops belong beyond the protected swing; targets often sit at or beyond the weak swing.

They also stop you from treating every swing the same: losing a weak high is normal, losing a protected low changes structure.

Chart examples

Bullish: protected low, weak high

BOSWeak highBroken highProtected low
The close above the old high (BOS) makes the low that started the move protected and the new high weak.

Bearish: protected high, weak low

BOSProtected highBroken lowWeak low
The close below the old low makes the high that started the move protected and the new low weak.Schematic diagrams drawn to explain the idea; they are not market data.

How to identify it objectively

  • 1Wait for a BOS with a candle close.
  • 2The swing that started the breaking move is protected.
  • 3The extreme made by the breaking move is weak until a new BOS happens.
  • 4Update the labels after every new BOS.

Bullish use

  • 1Bullish BOS creates a protected low below.
  • 2The new high is weak and is a natural target.
  • 3A close below the protected low cancels the bullish structure.

Bearish use

  • 1Bearish BOS creates a protected high above.
  • 2The new low is weak and a natural target.
  • 3A close above the protected high cancels the bearish structure.

What confirms it

  • The BOS that created the labels closed beyond the swing.
  • Pullbacks hold above the protected low (or below the protected high).

What invalidates it

  • A close beyond the protected swing.
  • The labels were assigned before the BOS closed.

How a hypothetical setup is built

Entry

Buy a pullback in a bullish structure that holds above the protected low and closes back up.

Stop

Below the protected low.

Target

The weak high.

A hypothetical illustration of how the concept is turned into a plan, not a recommendation. Practise it on a paper account first.

Related concepts

Historical testing

Not tested on The Tradeskill yet. It is mainly a framework for stop and target placement; test it as part of a full entry rule.

Limitations: when it fails

  • Protected lows are not guaranteed to hold.
  • In fast markets the protected swing can be far away, making the stop large.
  • Labels change after every BOS, so they must be kept up to date.

Knowledge check

Pick an answer to see the explanation. Nothing is saved.

After a bullish BOS, which swing is protected?

1. After a bullish BOS, which swing is protected?

Why is the new high called weak?

2. Why is the new high called weak?

Where does the stop go in a bullish setup?

3. Where does the stop go in a bullish setup?

Practise it risk-free

Open the free chart, use replay to go back in time and look for this concept candle by candle with $20,000 in virtual money.