Previous Month High (PMH)

The previous month high is the high of the last completed calendar month. It is a position-trading and swing reference. Trading above it means the new month has exceeded last month's extreme. It often lines up with obvious horizontal resistance because a month of trading left a real high.

Read it from the monthly candle after the month has closed. Do not use the high of the current month and call it PMH. The current month is unfinished.

A monthly close, or a decisive daily close, above PMH puts the new month outside last month's range. Pullbacks toward PMH are the large-scale throwback.

Failure at PMH keeps the market from accepting higher prices than last month. It is a location for a swing short only if the daily structure agrees. The level alone is a large area.

Treating PMH as an intraday tick level. The high of a month is a zone once you account for the wick and the nearby daily swings.

After a strong new trend, PMH is far below price and no longer an active decision point. It becomes a historical marker until price returns.