What does it mean when something is "broken"?

In creating protection,

the thing I spent the most time on was here.

What should be the criterion for deciding that it is "broken"?

If this becomes ambiguous,

no matter how good the ideology is

it ultimately comes back to discretion.

Whether it is broken

the moment I start judging by feel,

• it might still return
• this could be noise
• I want to watch a bit longer

Like this,

the judgment suddenly revives.

Therefore,

the condition that yields the same conclusion no matter who looks at it

was necessary.

What I thought of first was

a method to cut it off at once.

• A single reversal candle
• A moment of break
• A relatively large bearish candle

But this was not good.

There was too much noise.

A single move,

can occur anywhere in the market.

• Wicks
• Around an indicator
• Temporary selling

If you treat this as "broken",

the profits you intended to protect would be shaved away.

So,

I shifted the condition by one step.

Look at whether the reversal "continued."

A single reversal is

still a breath of life.

If it continues twice,

the trend begins to change.

Only then,

a meaningful difference appears.

However,

what you look at is not the wick.

Only the closing price that is confirmed.

Whether it broke in the middle does not matter.

Once confirmed,

whether the closing price breaks the line.

That is all you look at.

In other words,

• the reversal candle
• two in a row
• and the second one
• closing below the line

is defined as the state where it is "broken."

With this definition,

what happened is

• not too early
• not too late
• no emotional influence

However,

only the fact that the structure has collapsed remains.

The thought of “could have gone further”

does not remain.

The notion “it would have been better to endure a bit longer”

also does not remain.

Because,

if the conditions are not met

it is not broken.

If the conditions are met,

it is broken.

That’s all there is to it.

In this moment,

Protection is no longer based on a "feeling."

It became a structure.

When you can create a condition that does not doubt whether it is broken,

trading becomes calm.