How To Identify Powerful Entry Levels - Trend Traders Secrets REVEALED

what's going on everybody welcome back to my youtube channel so for today's lesson i'm gonna be sharing with you the two most important levels as a trend trader that you should be identifying to take your trades let's roll the intro so for our first example we're going to take a look at pound usd so from an hourly perspective we can clearly see that the trend of this market is to the upside very briefly we can see prices topping out we can see prices create in a potential high low level and we can see multiple wick rejections indicating this bearish pressure at this moment in time if i was in the live markets i'll just simply be waiting for the market to break either to the upside or to the downside now once price breaks to the downside this is confirming confluence to me this is illustrating bearish momentum in a potential reversal market strong trend to the upside price topping out creating multiple wic rejections a bearish move to the downside with a very subliminal lower high a consolidation where prices neither break into the downside or to the upside and then a final break below once i get this information i'm going down to my entry time frame and this is where i start to plan my trades so on our entry time frame you can clearly see here that the market is in a very strong push phase now we never sell a strong push phase market we're always waiting for the market to pull back either for a retest or as i'm about to teach you today a retest of a major structural level so let's draw this in how i'm looking at this market structure is here multiple wick rejections a final break close below this level here and this is what i will classify as your perfect break and re-test level so if price comes back to this level and gives us signs of wick rejections or strong momentum candles to the downside in line with this downtrend then i'll be looking for cells but you might be asking well what's the second most important key level well the second most important key level is going to be this area right here now the reason for that is because when the market is making a downtrend it will make highs lower lows lower highs and lower lows when the market makes a lower high and a lower high and a lower low then what that creates in layman's terms is a down trend to the downside so what i want to be monitoring is where is my major lower high level on this market structure well at this moment in time the major lower high level on this market structure is right here this was the last attempt that the bulls attempted to break above but failed price respected and that's where the momentum shift happened to make that new lower low in line with this downtrend as you can see plotted in here so the most important or the two most important key levels when planning to take a trade as a trend trader will be your perfect break and re-test level or your major structural higher low or lower high so if price comes back to this level it's still in a downtrend and you can still sell the market if given the evidence and if the market comes back to this level then we classify that as a clean break and retest of a major structural level so let's see what happens with this example and let's continue to roll this out now don't be worried if price continues to push down guys the trend is still down there will be many more opportunities just wait patiently for the market to come back to your key level now you might be saying well is this not your major lower high yet because price came to it it respected it and it created a reaction well no this lower high that seemed to be developing did not create that lower low yet so only until this low is broken to make the lower low will this be the perfect retest and this will be the lower high so we now stick with the same key levels as we have drawn in here which is our major lower high and our perfect retest level now don't be too shy to move these levels here this is not a level that should stick in one place if you see price reacting from this level and you see wick projections then be very wary that this might be just the perfect re-test that you're looking for again we have two week rejections we have strong momentum into that perfect retest level and now we can safely say if we place a sell stop below this level if price is to go up then guess what you won't be triggered into this trade and if price goes down then guess what you'll be in a very good place taking this trade in line with the trend and with the momentum of the next candles and as you can clearly see here price is doing pretty well don't be worried if price comes back remember if price is in the downtrend and it's respecting this level and giving you that evidence of that wick rejection then in theory it will stay below it and then all you're waiting for now is for that take profit so this example number one let's move on to example number two for example number two we're going to look at usd swiss franc from an hourly perspective you can clearly see the trend of this market is to the downside there's no debates now we know what we're looking for which is sales now what we have to do with this market structure is we need to mark our major structural low so if price breaks below this this will be our perfect break and retest level with this structure and if price decides not to break this level then what we'll be looking for is a reaction at this level as our plan b as it were for a retest of the lower high so the trend is clearly to the downside i mean it is uh definitely debatable whether we should be taking cells now but let's just say we've come into the markets in the morning we're doing our pre-analysis and this is what we see we're only going to be confident when we see a momentum shift breaking this low looking to take a perfect re-test or if the market comes back to this level as our major structural lower high a re-test at this level so let's uh mark this in and let's see what happens so the market's continuing to push to the downside what we're looking for is a break of this structure clearly and now we're looking to see how the market comes back to this level now at the moment we don't have any wick rejections that will give us that pin bar kind of look that we're looking for we have a wick rejection here so given the evidence if the market creates a second wick rejection here to the downside um then that would definitely warrant a trade at the moment it attempted to push down and failed so we'll just continue on with our analysis and see what happens and uh no we don't have anything at the moment now what the majority of trend traders are doing at this stage is panicking the breaker retest level the level where the market is holding has not continued this downtrend and made that lower low but rather broken above the panic now is to buy this market at the first signs of a potential reversal but we as trend traders should not be trading based on impulse the trend is down okay highs lower lows lower highs lower lows lower highs lower lows and our major lower high is this level here remember why well until the low is broken this does not become a retest level and this does not become our major lower high so we're still working with these levels here let's continue to press play and see what happens so price is coming to this level really really strong bullish into a major lower higher level in a downtrend and what we're looking for now is wick rejections or a strong impulse move to the downside and as you can clearly see here we have a very strong reaction from that level so with this as an indicator we can safely say as long as the market respects this level and trades below it then in theory we are in a very good position to take this trade in line with the trend and in line with the momentum and in line with that lower high that was formed after that lower low was made i hope i'm making a lot of sense here because i know i am but i hope you understand and get the gist of it major lower high lower low retest level was not respected now we get a reaction from this level here as our major lower high let's see what happens this is absolutely beautiful and it happens every single day without a shadow of a doubt and i did not expect to still be sitting in this trade what is happening and there we go we hit take profit so guys and ladies i hope this was useful to you i'm telling you now this is very very powerful and if you go away and back test this you will see for yourselves that every single day as trend traders the market will create two key levels that it will respect without a shadow of a doubt if the trend is to continue to the downside just remember them your perfect break and re-test level as mentioned and your major lower high or higher low level in the market i hope you found this useful and as always say smash that like button subscribe turn on notifications and until next time take care

Channel: RockzFX Academy

Views: 176,815

Keywords: how to determine forex entry point, how to determine entry and exit points in forex, how to enter a trade, best entry point forex trading, forex entry point indicator, best entry point forex, how to enter a trade in forex, how to enter trade in forex trading, how to enter forex trade, forex when to enter, forex entry confirmation, how to find entry point in forex, entry point forex, forex entry techniques, forex entry point, forex entry point strategy, forex, forex trading

Id: mtdU_SxftQ4

Length: 10min 15sec (615 seconds)

Published: Mon Aug 17 2020