Skip to main content
🛡️ Risk Management#smc#risk-management#stop-loss#order-blocks
M

Market Hawk

Trader ·

SMC Stop Loss Placement: Order Block Method vs Structure Method

In SMC trading, stop loss placement is not arbitrary — it should be anchored to the logic that invalidates your trade idea. Here are the two main approaches: **Method 1: Order Block Invalidation** If you're entering at a bullish OB, your stop goes below the OB low. If price trades below the OB, the block has been "broken" and your entry premise is gone. Typically 10–20 pips beyond. **Method 2: Structure Invalidation** Your stop goes beyond the last swing low (for longs) that would indicate structure has shifted. This is a wider stop but logically sound. **Which to use?** - For LTF (5m/15m) trades: OB method — tighter stop, better R:R - For HTF (1H/4H) trades: Structure method — accepts more heat but reduces premature stop-outs **The trap:** Using a tight OB stop on an HTF trade. HTF price action is noisy enough that OB-tight stops get hit before the trade works. **Rule of thumb:** Match your stop method to the timeframe you're trading. Which stop method do you primarily use with SMC?
Comment
Advertisement

💬 0 Comments

No comments yet

Start the conversation!

💬 Add a Comment

Sign in to comment

Advertisement