SL placement Introduction

This is quite the important side-topic here, which you have seen me do a couple of times and will now understand the logic behind it. Knowing this will help you get into positions with a tighter stop loss and get better risk/reward scenarios out of it.

There is logic behind the whole price delivery. And why a lot of times price does not go below the main high/low that runs liquidity.

Advanced example on stop loss placement

Price that grabs liquidity and then causes a market shift doesn't have intent to re-run the low in this case. The liquidity has already been grabbed, and if it leaves behind arrays, the signs are clear.

In this case we can cover just the SSL or even the Pressure levels as our stop. Of course there are many diÉerent scenarios, diÉerent variations as to when and where you can place your stop loss tighter. But overall, the gist is to place it out of the picture at a logical place in price for you. This is why it makes sense to combine this understanding after pressure, mainly due to the intent that you can see with price.

Diving deeper

The goal of our Stop loss is to have as many opposing PDA's in there as we can to cover that High/Low. This entails that if we are in the right direction with time on our side, these arrays should not get ran.

Personally, my stops range anywhere between 6-12 pips. Where a 10-pip stop is the sweet spot.

At the beginning of your journey, you will obviously spend a bit more time with stop management. But after you know your numbers, you will know where to place it aligning with your plan ahead and then also how quickly you can spot where structure would change if price reached that level.

Start creating logic behind your stop loss placements.

• - Don’t go tight on your stops

• - Cover some ground

• - Wrap some PDA's and Midpoints

Knowing when to and when not to add a few extra pips will be the key insight to better understanding yourself, that is what will help massively

Manual closes

Let’s begin with the fact that this is something you must not dive into straight away, as you will pick upsome bad habits if not done correctly. I can guarantee you this will lead to emotional mistakes. But Icannot bear with myself if I know that I haven't mentioned it.

The biggest tip when it comes to this way of closing trades that are in losses would be to start collectingdata such as MAP -> Most adverse price.

Figuring out how deep price goes against you.

But only until you master yourself, and your approach, my tip would be to not try this method whatsoever. Only thing you should be doing with your running positions so far is risk removal and partial taking.

With time, and my emphasis on time! You will notice scenarios where there is no reason for you to keep the trade open, this usually occurs when internal orderflow changes.

“Avoid doing that for now in the early stages of your trading career.”

Midpoints

The same logic can be applied to midpoints as well, those being midpoints of OB's as our MT or midpoints in displacements/imbalances. We always want to cover the midpoint of the PDA. Not the basic rule of thumb, but a neat addition to keep in mind when you are trying to cover some ground with your midpoints.

When we have clear orderflow, we automatically assume that price won’t go deeper than the MP of our technical arrays that we have drawn. Obviously, it is not safe to assume that all the time. It will clearly happen that wicks will push price deeper than anticipated. So always take the lower end of the stick and play it safe.

Overall, the understanding is at where price stops, where it could reverse or hold. In addition to time, seeing where LOD and HOD forms can give you a huge advantage.

When your bias is right, and you are in that flow state, you should be able to point out those important areas, reversal points and track points where price shouldn't tag to.