Journal
Where to place invalidation when a gap opens through support
A gap through your line is not the same event in a SET name and a US name you hold from Thailand. Week five is built around that difference.
Invalidation, in this studio, is a close. We drill that until it sounds stubborn. A wick through a line is pain; a close through a line is the idea dying. Gaps complicate the drill because the market does not offer you the wick. It offers you a new open already on the other side of the pencil mark.
On a SET name the gap is usually overnight news, a foreign board print, or a thin open. You will see it at 10:00. If your invalidation was 'a daily close below 12.50' and the stock opens at 12.10, you still have a session to decide whether you honour the close rule or you cut because the premise — that buyers still defended that shelf — is already gone. Kit’s bias in class is to respect the written close rule unless the gap is so large that the planned hold no longer has a sensible size. That second case is a judgment, and we practise it with old charts rather than pretending there is a formula.
US names gap while you sleep. You wake to a chart that has already opened through the shelf you marked after yesterday’s close. Acting at 04:00 because you are angry is how people turn a swing book into a collection of market-on-open mistakes. The cash open in New York is still hours away if you woke at the European print; even then, a swing trader in Bangkok who cannot watch the open should have written, in advance, whether a gap through the line means 'exit on the next Bangkok morning after the US close' or 'exit if the US session itself closes through'. Those are different orders of delay.
We make students write the gap rule before they need it. On the week-five sheet there are three lines: (1) invalidation close, (2) what I do if we gap through before that close, (3) the maximum share count that still lets me follow (2) without wrecking the month. If (3) is blank, the position is too large for the rule you claim to have.
None of this is a promise that the gap will fill. Filling is a separate hope and we do not teach it as structure. If you want to trade fills, that is a different sitting, and it is not the intensive.