Stop Losses

Stop LossesLesson 2 of 124 min read

Why that price

The reasoning behind the default. What a valid sweep leaves behind, and what price trading back past it is telling you.

The rule is only worth following if you can say why that price and not another one.

The sweep did a job

Orders sat above the 2,431 high. Module 8 put them there and module 12 taught you which pools matter.

The wick to 2,440 reached them and filled them. The reaction that followed is the whole reason you are in the trade.

A sweep is price collecting the orders that were waiting.

Nothing left up there

If that sweep was real, those orders are gone. The pool that pulled price to 2,440 has been emptied.

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