Invalidation level

A stated price or event that would make a particular chart interpretation no longer fit its own rules.

Invalidation belongs to a specific thesis. A precise statement names the price, timeframe and event, such as a full candle close, when those conditions are actually part of the method.

A chart interpretation may be invalidated if a full hourly candle closes below the swing low on which it depends.

Invalidation of an idea is not necessarily the same as an executable stop order, and slippage can prevent execution at an exact price.

Also called: what is an invalidation level, invalidation level meaning

A definition, not financial advice. Trading carries a risk of loss.