The lesson on YouTube
Watch. Then work through the idea.
Watch the English lesson first, then use the worked example and quiz below to check the idea. The article is a companion, not a transcript.
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What is actually happening?
A premise can depend on a completed close. A protective stop can respond to an intrabar price trigger, under venue-specific rules. These are different mechanisms. A bar can trade through a stop and recover before the close; the completed chart alone does not cancel an actual exit.
Guided example · Synthetic intrabar illustration · execution is an assumption
An intrabar stop can exit before the close
Keep an executable protective order separate from a close-based observation.
Restart & example assumptions
Authored synthetic observations, shown in sequence. Every comparison uses only the revealed data. This is a worked learning example, not live prices, broker execution or a profitability backtest. Follow the article’s exact definitions; measurements and pattern names alone do not authorize a trade.
For charts: tap a candle or swing to inspect it; drag horizontally to browse; wheel or +/− to zoom; arrow keys to inspect; Home to restore the step view.
Make the conditions explicit.
State the market premise, the evidence rule, the protective order type and the cash budget separately. Confirm which bid, ask or last-trade price activates the order.
In the source lesson, the recovery zone is 99.80–100.00 and the chosen close-based invalidation is below 99.60. Specify an executable protective stop rather than silently treating a closing rule as an order.
If the premise fails, follow the declared exit rule. If the protective order executes earlier, the original position is already gone; do not record it as still open merely because the close recovered.
The quoted rules are illustrative research specifications. Parameters are not recommendations and have not been presented as profitable backtest results.
What can this cost?
A stop-market may execute worse than its trigger. A stop-limit can fail to exit when its limit price is unavailable. Neither guarantees the maximum cash loss.
How the idea can fail.
Dragging the stop closer to preserve a desired quantity can change the strategy’s premise. Holding size constant after widening the stop raises estimated risk.
Practical habit
Write two lines: “evidence invalidation” and “protective execution.” Then calculate size from the latter’s assumptions.
Go one level deeper
When both stop and target lie within one OHLC bar, do not assume the favorable execution order without finer data or a declared conservative rule.
Check your understanding
A stop is triggered intrabar, then price closes above your close-based invalidation. What is safest to report?
Further reading & boundaries
These examples are original educational exercises. General background: CME Group: position sizing; Fidelity: technical analysis. Neither endorses these example rules. No hypothetical result establishes future profitability.
Editorial revision: 13 October 2026 · Synthetic data · Educational use