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Two separate things. Start with the walkthrough to learn the screen you trade on; the topics explain the trading behind it.
Two separate things. Start with the walkthrough to learn the screen you trade on; the topics explain the trading behind it.
Candle Arena needs the height to show a chart and your trade at the same time. Landscape on a phone is not supported yet.
Each candle here covers 15 minutes. Price rose to 39.10, pulled back to 37.62, then turned up again. The lowest point of a pullback is its dip low.
Buying here is going long: you profit if price rises. Before buying, settle one question. At what price is this bet clearly wrong?
A stop, or stop-loss, is an order that sells automatically if price falls to a set price. It is chosen before buying, while nothing is at stake yet.
The bet is that the pullback ended at 37.62. If price later falls below 37.62, the pullback did not end there. The idea is proven wrong.
Price often pokes a few cents past an obvious low, then turns back. So the stop sits a little lower, at 37.54, 0.08 under 37.62.
Dip low 37.62 · Stop 37.54 · 0.08 of room
Wanting to lose only 0.20 a share puts the stop at 37.74, above the dip low. The two candles before entry both dipped below that. Ordinary dips would end it.
Buy 37.94 · Stop by money 37.74
A stop becomes a sell order once price reaches 37.54. In a fast drop, price can jump straight past it and the sale fills lower. That is slippage.
Buy at 37.94, stop at 37.54: just under 37.62, where the idea breaks. The chart chose it, not the money. The same works on 1-minute, daily or monthly charts.
Buy 37.94 · Stop 37.54 · 0.40 a share if hit
You buy at 37.94. The dip low is 37.62. Where does the stop belong?