STOP LOSS (How to define)

1. Let’s say you’ve defined the vol range like so based on a signal + trigger.
2. You enter the trade near the top end of the range convinced it’ll break out.
3. Instead, price fails to break out and then fails to hold midrange support.
4. You get stopped out. But that’s not the end of the story.

It’s not the end of the story because the SIGNAL BAR’s VOL RANGE is still valid.

You can try to re-enter near the bottom end of the range.

5. You re-enter near the bottom end of the range.

6. Set stop based on your risk appetite based on (1), (2), or (3) FIBOH extensions.

The DIFFERENCE this time around is that (1), (2), and (3) are extension levels that exceeds the SIGNAL BAR’s BIAS
already. Basically, your decision to use (1), (2), or (3) as your stop loss points will depend on HOW MUCH ROOM you’re
willing to give your trade idea before you say, “I’m wrong.”

In the first scenario, you get stopped out because you mistimed your entry and maybe even poor execution, and that’s
fine. You’re being given a second chance!

In the second entry, you get stopped out because it’s already a FAILED IDEA. So you move on, and look for a different
idea (i.e., NO REVENGE TRADING).

BOH Society. Lecture by Jiego Mojica on Ryver (2020 Feb 10 0508).