Most traders set SL wrong. Here's the right way. ๐
โ WRONG WAY โ What most traders do:
"I'll risk $50 so my SL is $50 below entry." โ Random. Based on money, not structure. โ Gets hit by normal price movement constantly. โ You're basically donating to smart money.
โ RIGHT WAY โ What professionals do:
SL goes at the point where your trade idea is INVALID.
For a Long trade: โ SL goes just below the liquidity sweep low โ Or just below the OB you entered from โ That level being broken = trade is wrong. Exit.
For a Short trade: โ SL goes just above the liquidity sweep high โ Or just above the OB you entered from โ That level being broken = trade is wrong. Exit.
๐ THE 3 RULES FOR SL PLACEMENT:
Rule 1: SL must be at STRUCTURAL invalidation Rule 2: SL must be BEYOND the liquidity sweep (not inside it) Rule 3: Never move SL further away to "give it more room"
๐ THEN โ calculate position size based on that SL distance. Not the other way around.
๐ Currently watching the Demand Zone + FVG below
๐ Bias: Bullish (pending confirmation)
Price is dropping from the highs โ โ SSL is resting right above our zone. We expect that liquidity to get swept first, then a tap into the FVG + demand confluence where the original rally started. Thatโs where buyers should reload.
What we need to see: โ Price sweeps SSL & taps the zone โ Bullish reversal candle forms โ Confirmation = LONG entry
So you open a $500 position. If it hits SL (-2%) = you lose $10 = 1% of account. โ
๐ My Rules: โข Never risk more than 1-2% per trade โข Never add to a losing position โข Always set SL BEFORE entering โข RR minimum 1:1 on every trade
With these rules: Even 55% win rate at 1:1 RR = profitable over time.
Save this formula ๐ Use it on every trade.
Drop โค๏ธ if you'll calculate your position size properly from now on!
๐ Currently watching the OB + FVG confluence zone below ๐ Bias: Bullish (pending confirmation) Price is pulling back after the rally โ โ right below sits a stacked demand zone where an Order Block and FVG overlap. That confluence makes it a high-probability spot for buyers to defend before targeting the 4H swing high. What we need to see: โ Price taps the zone โ Bullish reversal candle forms โ Confirmation = LONG entry ๐ Full entry, TP & SL โ Premium members only. Check profile pinned message.
๐ Currently holding above the flipped support zone ๐ Bias: Bullish (pending confirmation) Old resistance broke and price is now retesting it as support โ โ a classic S/R flip. As long as this zone holds, the next magnet is the daily supply zone above near the previous highs.