Stop and timeframe

Before any entry, the stop. Where it sits is decided by the block, not by how much you would like to risk.

The stop sits beyond the block

Take the bullish case. Gold swept the 2,391 low with a wick to 2,386, then closed at 2,431 above the 2,424 lower high. The block runs from 2,386 to 2,424.

If you buy inside that range, the stop goes below 2,386. Below the block, not inside it.

A stop inside the range sits in the part of the chart where price is still being filled. Price working through the block is the thing you are waiting for, so a stop in there gets hit by the setup itself.

The stop goes beyond the far side of the block.

It belongs to the chart the move happened on