The price at which a trade idea is proven wrong. The stop goes just beyond it.
How traders use it: Define invalidation from structure first (the swing or zone that must hold), then size the position so a stop-out costs the planned amount.
Common mistake: Placing the stop where the loss "feels" acceptable rather than where the idea is wrong.
Related: Stop placement · Stop-loss (stop) · Position size
Used in: Risk, invalidation, and the stop
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Concepts only. Education only, not financial advice. No pattern on this site has a published win rate.