Glossary
What is Invalidation
The price at which the trade idea is no longer valid. The stop goes beyond it — plus a small buffer.
How it works
The idea is a reversal after the sweep: price back under the sweep low — the idea is gone.
Example
The idea is a reversal after the sweep to 62 606. Price back below it — the idea is gone, so the stop is 62 590, 16 $ beyond the extreme.
Common mistake
Not knowing the invalidation before entry: then the stop is set by money, not by the chart.
Read next
Related terms
Frequently asked questions
- Where can I learn Invalidation step by step?
- In the Trading OS Academy: “Position size without ego”, “A zone should improve risk, not the decision”.
- What is Invalidation related to?
- Stop-loss; OB — order block; Sweep — liquidity grab.
Plan versus outcome — for every trade
The Trading OS journal keeps the planned RR and the actual R of each trade side by side and computes expectancy from real results.
No sign-up — the journal runs in your browser; an account is only needed for sync.