Chapter 4 · Part One
Protected Highs and Lows
The levels institutions defend, and the strongest reversals on the chart.
About 6 minutes
A protected low, or high, is a swing point that remains intact despite market attempts to break it. These often form directly off higher-timeframe levels like daily FVGs or weekly support and resistance.
Protected lows provide the best reversals because they represent levels defended by institutional players.
What actually makes a low protected
Holding a level twice is not the definition. A low is only protected once price breaks structure above it. Until that BOS happens you have a low that has held a couple of times, which is not the same thing.
Remember: a protected low is not confirmed until a BOS occurs.
- 1Low forms
- 2First BOS confirms it
How to identify them
Lows that form right at an HTF FVG and hold. Multiple tests of the same level that fail to break. Short-term lows that form above a long-term low, creating a shelf.
When protected lows align with order blocks, FVGs and ERL, these become the highest probability entry zones available. The stop goes beyond the protected low, and the draw is to the opposite ERL.
And what ends it
Protection is not permanent. The moment a candle body closes through the level, it is over, and the mistake that follows is continuing to treat it as support.
A wick through is a test. A close through is an invalidation. Stop defending it.
- 1Test, holds
- 2Test, holds
- 3Closes through
- 4Now resistance
Wick through, or body through
This is the one distinction in the chapter that a line diagram cannot show you, because it is about the candle itself rather than the shape of the move.
- 1Wick through, body closes back above. This is a test, and the level survives.
- 2Body closes through. The level is done, and it becomes resistance above.
Check yourself
A level has held twice. On the third attempt price closes its body below it, then rallies back above. Is the level still protected?
Before you move on
- You can tell a test from an invalidation by the candle close
- You know why a protected level beats a random swing point
- You would wait all session for one of these rather than force a lesser setup
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