Price Location

Continuation Point

The level where breaking confirms the trend is continuing

The continuation point is the boundary of a structural range that, if broken, confirms the prevailing trend is continuing. In a bullish structural range, it is the swing high. In a bearish structural range, it is the swing low. A break and close beyond this level forms a new structural high or low and creates a new structural range.

How to Recognize

  • Swing high in a bullish range (break confirms new higher high)
  • Swing low in a bearish range (break confirms new lower low)
  • Break creates a new structural range
  • Confirms trend continuation and new impulsive phase

How to Avoid

  • Expecting continuation without confirmation close
  • Entering before the continuation point is actually broken
  • Treating a wick through continuation as a valid break
  • Ignoring volume on the break