The stop, the targets and management

The stop goes behind the structure, the targets go on the next levels, and management follows six rules that do not change from one setup to the next. This lesson fixes all three, with a diagram for the two main families. What makes the method psychologically bearable is that everything is decided before the entry: there is nothing left to invent while price is moving.

The targets

• T1: the next level in the direction of the trade, at 1R at least. For a brake fade, it is the bottom (or the top) of the neighboring acceleration block. For a breakout, it is the next wall or strike.
• T2: the level after that, at 2R at least. For a fade, the next brake or the first P marker (on a short) or C marker (on a long). For a breakout, the next brake.