Hi everyone, warmly welcome to this short educational video where I'm going to go through a bit about invalidation levels because that's a very important part when you go out in the markets and trade. You need to understand where to put your stop- loss, where to put your invalidation for your analysis, etc. So, if we look at this uptrend right now, I usually try to find out lows that took out liquidity. In this case, I'm having an uptrend here in front of me. So this low here took out a lot of liquidity below this low. This low here took out liquidity here. If we want to invalidate basically fail this uptrend, I would like us to see a break below this low. And if we break below it, I often want to see like closure and stuff like that below that low. But just for your understanding, you don't want to put your invalidation below every single low. You want to put your invalidation below a specific low that took liquidity. That's the main thing. And of course, I can also sometimes put my invalidation below just a single low that didn't take out liquidity. Then I'm basing it on different kind of concepts in the same time. For now, I just want to keep it basic for you and then we can like take it step by step further on. This was just an example for the uptrend. And if we check this area where we are very bearish in NASDAQ, let's check where can we put our invalidation in a downtrend. In this case, you can see here we took out some liquidity above this high. I don't want to see the price break above this high. Otherwise, it's a bullish sign. So, in this case, we are bearish. We are going down. And if we would break above this high, that's a bullish sign. So, think about it like this. Put your invalidation level where you really feel like I don't know what the chart is doing right now. If we break this low or if we break this high, then I'm not understanding what is happening right now. That's the procedure in my head. I'm trying to think about it like that. Let's say we're around here and I'm bearish, aiming for new lows, etc. In my head, I want to place an invalidation of my analysis. When we break a high, I really think that we shouldn't break. If we should be bearish and in this case, if we are somewhere around here, then of course, it should be this high. Why? Because that high took liquidity before we broke down. It's not about putting your invalidation just above highs and lows with this logic. Sometimes I can put my invalidation here. For example, let's say we are here. I'm putting my invalidation here. Why? Because this is a supply zone. And if we break this supply zone, then we're not bearish enough. So then it makes sense to put my invalidation level above the supply zone. And if we just check a bullish scenario, we have a demand zone here. We have another demand zone here. We are respecting demand zones. And if we are here, I can put my invalidation level here. Why? Because this is the last demand zone which pushed us to new highs. And if we break this demand zone, then we have started something more bearish than bullish. Because if we were bullish, we should just touch the demand zone like this. Take some orders and then we should break to new highs as we have been doing before. But now if we break this low, which is also the lowest point of a demand zone, then I'm invalidating my analysis. I'm failing my analysis. I don't want to aim for higher levels, for example. That's something you can keep in mind. So try go out in the markets find levels where you think that if we break this low or if we break this high then I don't really understand what the chart is doing right now. If you're able to find those levels it will be much easier for you to just step away from the charts because if you're not understanding what the chart is doing then why push the limit and try to find new trades etc. That's key if you want to be profitable over time you need to understand now I'm understanding what the chart is doing. It looks clean. let me look for a trade. When it's not fulfilling your criterias and your logic you want to see, then just step away from the chart. This is a key point in your trading plan. You need to know where to place your invalidation for your analysis. And sometimes your invalidation for your analysis is not the same as your stop-loss for your trade. Maybe I have my invalidation for the analysis here, but I put my stop loss somewhere around here and then I get stopped out. I try another trade and then I got stopped out and then my whole bias, my whole analysis got invalidated. Then I shouldn't be looking for more trades. Invalidation could be your stop- loss, but it doesn't mean it is your stop- loss. Invalidation is often for an analysis. Now, my analysis was invalidated, but my trade maybe I had a stop-loss that is tighter. So, keep that in mind and go out in the markets, train on the stuff I told you here in the video, and you're always welcome to discuss with each other, help each other when it comes to the course material because we're like a big family, and if you're teaching somebody else in the group, he or she will teach another person and we will just grow together. With that being said, thank you for watching and see you in the next