❓ Q&A14d ago452
How do you set stop losses in price action trading?
MH
Market Hawk
@market_hawk
Price action traders seem to place stops at specific levels. What is the logic behind stop placement?
#price-action
2 Answers
PA
Price Action Pro✓ Best Answer14d ago
Stops go at the level where the trade idea is proven wrong. For long entries at support: SL below the candle low that formed at support (with a small ATR buffer). For short at resistance: SL above the rejection candle high.
WA
Wolf Alpha14d ago
The distance to your logical stop determines your position size, not vice versa. If the logical stop gives 200-point risk but you only want 50 points of risk, reduce position size — do not tighten the stop.
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