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Let's start with stop loss placement. The

most important thing in a trade is your

stop loss, not to take profit. So stop

losses should be placed behind a high

volume node. This is what we call an

invalidation point. So why do we place

stop losses behind a high volume node? A

high volume node will defend price. If a

high volume node fails in the opposite

direction to your trade, the odds are that

you've placed a losing bet. So by placing

your stop loss behind a high volume node,

you are utilizing a volume based wall to

protect your stop loss. We also refer to

these as sandbags. This is superior to

using typical retail stop placements such

as candle bodies, swing points, equal

swing points, as it's based on actual

market interest versus where every other

retail participant would place their stop.

So placing your stop using a high volume

node allows you to get more favorable risk

to reward and to place a stop loss away

from where the masses would be placing

their stop loss, which has its own edge as

well. So if we look at the diagram here on

the right, we can see a trade here that

was executed at a sell position executing

five contracts short at 568,250 and bought

back at 5676. Now if we look here where

the stop loss placement is, the red line

is where the stop loss was for this trade.

And you can see that it's placed behind

this high volume node here, which is

highlighted in the white and with the

brackets on the side here. You can see

that the stop loss is placed just behind

the high volume node. So as price dropped

below the previous day's value high, came

back to retest the high volume node, stop

loss goes behind the high volume node. If

price was to rip back through the high

volume node here, chances are price is

going to continue going to the upside. Now

how about the take profit targets?

Ideally, you want to take the majority, if

not all of your position off in front of

an opposing high volume node. The reason

we do this is the same reason as to why we

place our stop losses behind high volume

nodes. It's because they act as areas of

support and resistance where price will

more likely pull back or reverse. So by

taking profit in front of a high volume

node, you are allowing a smooth passage

for your trade to hit take profit. If you

look at the example trade here on the

right, you can see that I targeted the

opposing node further down here. Up here

we had a couple of nodes that I was

willing to risk trading through, but you

can see we did get a bit of a reaction to

the upside. But because this high volume

node here in front of my stop loss held

and I had a slightly higher risk to reward

target in mind and a bias in mind, being

that we're at the valley area high, I

wanted to see this melt down. But I placed

my take profit target at 5.676, which is

right at the edge of this larger and

thicker high volume node to the downside

here. So I placed my take profit target

somewhere in front of that high volume

node just before it starts to get really

heavy and took my profit at that point. So

it's a general rule of thumb to use these

high volume nodes both as take profit

targets and as walls or sandbags to

protect your position and place your stop

loss behind. Let's get the Legions of

traditional耳 want to change your stop loss

and height Here I want to spend backwards

at that point and see what's very good