2026-05-14
Group Setups Into Families That Share Risk Rules
Unique rules for every pattern create noise. Shared families keep risk language consistent under pressure.
A breakout that fails and a pullback that fails are different stories, but both need a clear “thesis broken” sentence. We teach students to bucket setups into a few families—continuation, reversal, and range—so risk rules can be reused instead of reinvented mid-session.
Inside a family, stop logic and size reduction near crowded levels stay the same. What changes is the structure that defines invalidation. Writing family rules on a single card beats hunting through notes when price is moving. Bring three recent trades from the same family and check whether your exits followed one vocabulary or three competing ones.