What should a trader set after buying on the break of today's high according to Two Bar Breakout rules?

In the context of the Two Bar Breakout strategy, when a trader buys on the break of today's high, the appropriate stop placement is at today's low. This strategy is predicated on the idea that if the price has broken through today's high, it indicates upward momentum and bullish sentiment. Setting a stop at today's low allows the trader to enter the trade while also protecting against adverse price movements. If the market reverses and falls back below today's low, it suggests that the breakout was weak and the trade should be exited to minimize losses.

Placing the stop at today's low provides a logical risk management technique, as it allows the trader to remain in the position as long as the recent bullish trend remains intact. If the price goes below today's low, it indicates that the initial breakout strength was insufficient, warranting a reevaluation of the trade.

The other choices suggest alternative stop placements that are not in alignment with the Two Bar Breakout strategy's focus on utilizing today's trading range for risk management. For instance, setting a stop at today's open or yesterday's high does not align with the price levels that indicate the market's current behavior and can result in larger losses if adverse price action occurs. Similarly, using yesterday's close as a stop can potentially be