Measuring the stop distance
Lesson 4 of 4 · about 7 minutes
2 questions, each checked the moment you answer it.
4 steps · about 7 minutes
The interactive lesson walks these ideas one screen at a time and checks your answers as you go. The text below covers the same ground for reading.
The distance is one subtraction, read as pips
On EUR/USD a pip is the fourth decimal place, so 0.0001 is one pip and 0.0010 is ten. The plan sells at the neckline, 1.17733, with the stop at 1.18310. Subtract the lower price from the higher one: 1.18310 minus 1.17733 is 0.00577. Read at the fourth decimal that is 57.7 pips. Your stop is 57.7 pips from your entry. Use this distance when calculating your position size.
Measure the same distance on a second double top
This is a double top from July 2026. The trade is entered on the first candle to close below the neckline, which closed at 1.13829. The stop goes above the higher high at 1.14603 and clear of the spread, at 1.14630. From the entry at 1.13829 up to the stop at 1.14630 is 80.1 pips, bracketed below. The neckline at 1.13839 is the price that close had to beat, not the price the trade was entered at, and the two sit one pip apart. The second high printed 1.14454. Measuring the distance from an entry to a stop is the same subtraction on any chart.