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The breakout & pullback playbook

A five-part sequence used in coaching. It is a framework for asking better questions, not a mechanical promise of an entry.

Printed trading chart with highlighted price levels

1. Establish the structure

Mark the range, trend, or compression that gives the level meaning. Note nearby swing highs and lows. A line detached from structure is decoration, not a decision point.

2. Judge the approach

Compare clean movement with overlapping candles. Count repeated tests only when they are genuinely distinct. Ask whether price has room beyond the level or is breaking directly into opposing structure.

3. Define evidence of acceptance

Write what must happen beyond the boundary: a body close, time held, a base, or a continuation swing. The evidence depends on market and timeframe, but it must be stated before outcome.

4. Read the pullback

Treat the former boundary as a zone. Observe depth, pace, overlap, and response. A precise touch is not required; a response consistent with the plan is. If price is accepted back in the old range, acknowledge the contrary evidence.

5. Place invalidation and size risk

The stop belongs where the setup’s logic fails. Position size then adapts to that distance and to the trader’s predefined risk limit. If the structural stop creates unacceptable risk or poor reward space, the chart can be valid while the trade is declined.

Use it as a review sheet

For each screenshot, write one sentence under all five headings. Keep the original marks. Review a sample that includes clean wins, ordinary losses, missed entries, and ideas correctly passed over.

Discuss this framework in a coaching session.