When it is too far

The default is not always usable. Sometimes the price that proves you wrong is a long way from the price you got in at.

The problem, on the gold long

Gold swept the 2,396 low to 2,394, rose to 2,431, then came back into the 2,404 to 2,412 gap. A 15 minute candle closed at 2,410 and that was the entry.

The default stop is 2,393, just below the sweep. From 2,410 that is 17 dollars of risk.

Measure it before accepting it

Module 28 gave you the measurement: risk to the stop, reward to the first target, both in dollars.

The first target is the 2,431 high, 21 dollars above the entry. So the trade risks 17 to make 21. That is barely more than one to one, on a setup that has to be right often to survive.