CHARTTHREAD

Technical stop

A technical stop is a stop placed where the chart requires, behind the level and the breakout or false-breakout candle, even if it is a little wider than the calculated one. It may be at most 30% wider, with the position reduced so the money at risk stays the same.

The calculated intraday stop is up to 10% of the daily ATR. With a daily ATR of 2.00, that is 0.20; a technical stop may go up to 0.26, with a correspondingly smaller position.

Learn more: pillar four, the entry point and position size.