My NUMBER ONE Entry Strategy (Simple Patterns /Simple Process)

what's going on everybody welcome back so I thought I'd talk about this one I get a lot of questions saying to me rocks I took a trade I got stopped out and then the market went in my direction and I have a little something that I always turn to when I'm taking my trades making sure that I get into the best possible trading setups always get the best evidence and the best confirmation to make sure that the probability of me winning that trade is going to be higher than me being swapped out or me losing that trade now granny I do take losses like everybody else and it's just normal but we're not gonna go into that subject right now we're going to be talking about how to get the best entries finding those trades where we can find confirmed setups and have the highest probable opportunity of winning those trades so we're gonna take a look at UJ now this is recent history and what I want to identify first in this market is we can see the structure is down the markets making structure higher highs higher lows failed to make a new higher high and now we have a double top push phase exhaustion phase in the market now we could be looking for trading opportunities in an around this level here but I'm not going to be going into how we get into these entries I'm gonna be talking more about retest entries once we see the market shift in momentum so you looking at this chart we're clearly looking for sells we're just waiting for that momentum shift now I have set up specifically so that we can get that momentum shift because this is not what we're gonna be focusing on so we can see the momentum sheer strong bearish candle to the downside we have a break of the previous structure low and a nice area here to indicate that the Bears are definitely control of the market now a lot of you might be looking to the left saying well are you not worried about this are you not looking at this as a support level are you not looking at this as a demand level honestly guys I don't trade support and resistance and I don't trade demand supply or demand I'm just looking at the behavior of the market and trading structure period so whatever else is there to the left and is distracting you just try to forget about it for this moment and let's focus on what I'm about to tell you so once we scale down to our audio frame we can see that the market is in a very nice strong push phase we can see that the level of this market has been broken after a period of time now how do identify that this momentum shift is actually true and not fake well we can clearly see here the market created level where it didn't break for two hours there's lots of signs of bullish pressure here and then immediately we had a strong break close below structure how do we confirm this as a good break close blow structure well if we bring this back down to the previous structure level low we can see the next Aldi condo attempted to push up failed and now we continue to see bearish sentiment in the market so now once we go down to the 15-minute time frame this is our entry timeframe we're going to be looking for the market to come back to in and around this level for sellable opportunities now what most traders will do is they'll wait for the price section to come back look for the earliest sign of an entry which could be a pin bar an engulfing candle whatever it may be and then they look to take the trade so let's do that let's wait patiently so the markets come back to this level completely fine we're not worried now what happens on the 15-minute time frame as to in terms of being our entry timeframe because we know that this is the break close below structure we know that this is a key level in the market where price is broken and now we expect this level to hold strong so we're just looking for the evidence that we need in order to take this trade so we're now under starting to build that up we have a nice attempt to break above structure we have a wick rejection and a strong bearish candle to the downside so let's take this as our example for our trade and opportunity and for what most will do in a situation like this so we're always going to go for a one two three that's my favorite risk reward ratio one two three and having a good risk reward ratio is very important class this is what's going to keep you in this business alongside really good risk management so here we have it a one to three risk reward ratio we had to break we have a retest or what looks like a retest we have an attempt to break up a fail to break up and strong bearish candle to the downside so let's take this trade I'm not going to comment it all the way for it but price is leaving this area and then let's see what happens look here we get stopped out now this is a common occurrence that happens with a lot of traders can it be avoided disclaimer not all the time is there a way of getting to higher probable trading setups that are out there absolutely so let's take a look at this let's understand something let's clear everything that we have here the market fell to break below the structure for a very long period of time we finally broke below the structure what usually happens in the market sometimes we have a breakout then we have a break back into structure and what we want to be doing is avoiding this happening so as the market is pushing up into this level how do we know at this time that this is the actual retest and that the market is not actually going to be breaking back into structure well we don't know you're looking for the wick rejection as you're looking for the bearish pressure but still at this time this hourly candle still open which means it still could push up as you're entering this candle so how can we make sure that we identify the momentum shift and identify that this level is holding strong well what we can simply do is understand the phase of this market we have a push phase we have an exhaustion phase back into that key level and we have a continued push phase now what has happened at this stage well the market has created a level it's showing signs that it's respecting a previous key level in the market and showing evidence that the Bears are in control but is evidence enough will no not really what we want to see in this market structure is we want to see price come back into this area and we want to see price confirming that it's a strong area how do we do that well we simply allow the market to continue its phase in a downtrend which is a push phase we allow for the market to come back to that level and then what do we have here I talked about this pattern a lot we have a double top pattern now price attempting to break above this structure and failing is confirmation that the Bears are clearly sitting in and around this area so for whatever we see here whether this is a stop hunt manipulation blardy blardy blar the point is we can see confirmation so how do we take this trade well we just simply wait for the market to give us a close with a wick or some sort of bearish pressure to the downside to confirm that this behavior right now is still true we don't want to go in straightaway because if we take the cell what could happen the market could still continue with this bullish pressure to the upside and continue up so what we want to be doing is we want to wait for one more 15-minute candle or if you use in the high timeframes two one-hour candles or if you're using the 4-h timeframe too for our candles because what you will notice most of the time is that price does not leave an area immediately with one candle more often than not you will see price sitting in that area for a period of time showing signs of wick rejection and then going in the direction that it wants so if we only have one here now we don't need to rush into this trade we can clearly wait patiently for a second one to come whether it be a pin bar or whether it be a strong engulfing candle to the downside and now what can you see strong push face market level being created continued bearish momentum confirmation of that bearish momentum and now a clear set up for you to take this trade off of the back of bullish pressure with bearish pressure clearly evident in this market so once we have this we can take this trade with a stop loss above structure very small stop-loss here only eight pips will go for our one two three risk one ratio trade as I say I always go for one two three and then we can see what happens let's hit the play button so the market starts to move in our direction whilst we're taking this trade we're not expecting the market to break above this level why well if this is a level created in the market then what we're expecting the market to do is respect this level not peak how high but continue with that bearish momentum on the higher time frame analysis and continue down and as you can clearly see from this example we have a winning trade now does this happen all the time nope is there a high probable chance that this will happen often 1,000% I can bet my life on it and these double top and double bottom patterns are absolutely phenomenal in stopping you taking a trade getting stopped out and then seeing the market going your diet action and this applies to any which way you take a trade if you decide that you want to take a Head and Shoulders pattern you want to take a trade using Fibonacci's you want to use harmonic patterns it is always best to do a few things first wait for the momentum shift allow for price to create a level in the market then come back to that level to confirm that that level strong and then you can go down to your lower timeframes if that's what you do to look for your patterns or bullish or bearish pressure pushing into structure and fail in and then take in those trades and it's not just about taking one to freeze when you get down to a lower timeframes you could be take involved advantage of much bigger moves in the market as well and as you probably can see here this now starts to move into likes one two sixes etc etc but this is very key that you understand this point if you have evidence that the market is creating a level respecting the level showing signs of bearish or bullish pressure be patient wait for price to leave that level come back to respect that levels confirmation and then go in for the kill so I really hope this was useful and as I always say please smash that like button subscribe if you haven't already and until next time take care

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Keywords: stock market, trading, stocks, traders, trader, daytrading, daytraders, day trader, day trading, day traders, daytrader, online trading, technical trading, learn to trade, how to trade, live trading, trading education, trading seminar, live daytrading, invest, investment, money, wealth, freedom, vacation, flexibility, wallstreet, boss, power, business, millionaire, entrepreneur, noexcuses, tradingplan, success

Id: JCVnVx5zo3A

Length: 10min 14sec (614 seconds)

Published: Thu May 07 2020