For a long trade, the initial stop loss is typically placed just below the low of the setup/trigger bar or the recent swing low. For a short trade, it goes just above the trigger bar high.
If the price is the 50 SMA, you are strictly looking for buy (long) setups. steve primo strategy 4 pdf
This acts as your "Buy/Sell Line." It does not provide entry signals; instead, it dictates your directional bias. For a long trade, the initial stop loss
If you are studying these materials, remember that the exact formula matters less than your consistency in applying the rules. No PDF or strategy has a 100% win rate; success relies heavily on your discipline and risk management. Summary Checklist for Strategy #4 For a long trade