Hey
@Beany72
I always used to draw the chart like you did on IMU, so don't worry - however, I have a newer way of drawing and considering charts like them.
(I see setups like this quite regularly, so it seemed nessesary)
In drawing the chart like this, we are sort of suggesting that the stock has not broken out until it is above that line across the previous highs (and would also then suggest that if trading it, you might have a rule that says you can't buy it until it has actually broken out, and in this case you would be missing out on quite a bit of the gains - and in some cases price might stall out at this level for a bit while it absorbs supply and consolidates).
So zooming right out to get an understanding of the chart and what has happened in the past, you can see that the previous high that is marked on your chart as a breakout line, is a breakout from a funny looking sideways consolidation or accumulation, or something that eventually morphs into a sideways range.....whatever it is, that spike or previous high is a breakout. Following that, there is a consolidation of those gains, and then a little complex sideways range, and the current breakout (it is more clear on the next chart below).
View attachment 836330
OK, there is a breakout from the sideways range, a consolidation, then a complex sideways range (I say complex because there is a distinct mini breakout bar above that downtrend line, complete with the mandatory increase in volume), anyway after that there is the real current breakout bar (marked).
After that is some absorption around the line marking the previous high, before a secondary breakout above that line.
(I don't really know what that last bar is all about, maybe an intraday look might help to work it out.....later)
View attachment 836333
Does that make sense ??
Hopefully it helps in some way......
cheers
