medium · Volume Spread Analysis supply-demand-smart-money

A stock is trading at $50.00. You identify a bullish sequence and want to place a buy order.

According to VSA psychology, where should you place your stop-loss?

  1. At the 20-day moving average to follow the trend.
  2. Exactly at 49.00 to ensure a round-number exit.
  3. Immediately above the breakout level to ensure a break-even trade.
  4. At an irregular number like 48.37 below the last reaction low.

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