Overthrow And Stop losses

Question 1

Never put stops on or what number or in what pool or in what area

Answer 1

Round number

Liquity pool

First trouble area

Question 2

What three things must stop loss balance

1 clear invalidation of …. ….

2 - being …… system of finding where to put stop

3 balance what and what

Answer 2

1 invalidation of trade idea
2 - being a replicable system
3 balance risk and reward without being too tight about it

Question 3

When is it find to not trade even if setup is clear?

When …… definition isn’t clear

Answer 3

When stop loss placement isn’t clear

This means risk definition isn’t possible

Question 4

What is overthrow?

What other names is it called

Hints
False …..
Fake ….
Dev…..
Re…
Bull ….
Bear ….

Answer 4

When price extends beyond boundary (support or resistance) and falls back within it

Other names for overthrow

False breakout
Fakeout
Deviation
Reclaim
Bull trap
Bear trap

Question 5

What does overthrow clearly define for us?

Answer 5

Stop placement

Question 6

What direction are trades based on overthrow based on?

Answer 6

Opposite direction of the overthrow

Question 7

What four elements of overthrow are there

Hints
Clear technical ….. formed
Price closes through …….
Price stays relatively close to …..
Price closes back within ……

Answer 7

…… in each case is TECHNICAL BOUNDARY

Question 8

What to be carful of when placing thrust candle stop on MINI OVERTHROW / MINI DEVIATION

Answer 8

Don’t place stop at resistance

Question 9

Thrust candle stop vs furthermost deviation

Answer 9

Understanding of asset / market helps, this is discretionary depending on which is on balance sensible give Risk reward and likelihood of being hit

Question 10

If using highest most deviation for thrust candle short stop

Describe where to put short on chart

Answer 10

Question 11

If concerned stop isn’t in correct place when doing overthrow / deviation trade, what do we do?

Answer 11

Move stop to furthermost deviation

or move stop up a few candles from the thrust candle

Question 12

Crypto cred does what with thrust candle stops

Answer 12

Generally avoids them

Question 13

Probability of overthrow trade being successful?

Hints
Trend

Candle

TA

Answer 13

HTF trend reverses the overthrow - trade the trend

Impulsive candles breaking through boundary to return to other side, they do this fast - the MORE TRAPPED OFFSIDE DUE TO FAST MOVE THE STRONGER THE REVERSAL

Popular levels selected with TA

Question 14

Avoid calling a trend line what if impulse breaks it

Answer 14

Avoid calling it a washed (forgotten) boundary if it’s proven in the passed

Question 15

Ask Nils for what

Answer 15

Paid discord group he recommends

And

Twitter list

And

Advice in general