Explanation of the Stop-Loss Label Functionality

The labels display the price of the corresponding Order Block (OB) or Breaker Block (BB). This price is calculated based on the low (for bullish setups) or high (for bearish setups) of the candle immediately to the left of the Engulfing Candle.

In the label, a minus symbol (-) in the middle indicates the calculated stop-loss level.

How to Use the Stop-Loss Label Correctly:

For Long Positions (Buy)

Add a small buffer below the bottom edge of the stop-loss label. This provides additional protection against market volatility. Do not simply use the middle marker as your stop-loss; the bottom edge is safer.

 

For Short Positions (Sell)

Similarly, add a buffer above the top edge of the stop-loss label. This prevents being stopped out prematurely by price wicks.

 

Important Notes for Breaker Blocks (BB)

• For Breaker Blocks, the stop-loss label might sometimes appear in an incorrect position.
• This happens because the bias of the stop-loss can shift depending on how many Fair Value Gaps (FVGs) have been crossed. The stop-loss for a Breaker Block is determined by the original directional bias of the associated Order Block.

Good to know: If “Show OBs” is deactivated and only breaker blocks are displayed, stoploss labels are automatically deactivated!

 

Always check the market context and the bias of the block when setting your stop-loss.

Use the stop-loss label as a guide, but always adapt it to the current market situation for optimal risk management.