← Glossary
Invalidation
Invalidation is the reason a trade idea stops being valid — a level breaking, a pattern failing, a condition no longer holding — which can be a different thing from the stop price itself, even though the two are often set at the same level. A plan can be invalidated before its stop is hit, which is a signal to exit early rather than wait for the stop.
See also
This explains what invalidation measures. It isn't investment advice — see the disclaimer.