[text_block style=”style_1.png” align=”left”]Hey, Hey, what’s up my friend? I know you’re watching this video because you want to better time your entries. Perhaps you are the type of trader that always seems right to be entering the trades too late.
By the time you entered the trade, the market does a reversal or pullback and you get stopped out of the trade.
Maybe you’re the type of trader that somehow you’re always entering your trades too early. You get the direction, but the funny thing is that you’re too early.
You get stopped up before the market continues to move in your favor.
So if you happen to fall in any of these two categories, don’t worry, because, in today’s video, I’ll share with you a few of my secret techniques.
To help you better time your entries with deadly accuracy.
So here are a few things that you will discover.[/text_block]
[text_block style=”style_1.png” align=”left”]What happens is that this market tends to pull back towards the 50 periods moving average.
So if you were to buy somewhere here, and if your stop loss let’s say it is below this swing low or here.
It’s not going to save you because when the pullback comes, there’s a good chance it’s going to retest back this 50-period moving average and then continue higher.
So if you put your stop loss right anywhere in this area, chances are you’re going to get stopped up.
So this is why I say that you don’t want to be trading away from an area of value, but you want to be trading near an area of value.
Because now let’s imagine this. Let’s say you are patient.
You let the price come to you, you trade from an area of value.
And the area of values over here, let’s say the market retest lower:
And it maybe had a price rejection closing up slightly higher.
So now if you trade from this area, your stop loss can go somewhere about here, right at distance below the 50 periods moving average, and now you’re trading near the tail end of the pullback where the pullback is.
And that offers you a much more favourable risk to reward because the market is now getting ready to make the mix link up higher.
So remember, you don’t want to be trading away from an area of value.
You want to be trading near the area of value. You will have a tighter stop loss. And it offers you a much more favourable risk to reward on your trade.
One more thing to add is that for those of you who look at this chart and say
‘’Oh man Rayner look at this chart it is so bullish man, I can’t wait to get about the move’’
So what do I mean by this concept, let me just illustrate that over here.
Let’s say you look at a chart on maybe the 4HR time frame.
And the price is in this range over here near this lows at this point, and here on the lower timeframe.
So this area will be more significant. If it coincides with a higher timeframe level, if it coincides with a higher timeframe market structure, like support.
So if let’s say this is on the 4HR time frame, you know that this level over here is going to be more significant.
If on the daily time frame it looks something like this. You’ve seen an uptrend and it comes back and retest this level of previous resistance.
So now this lower time frame support is leaning against a higher timeframe market structure and that improves the odds of your entry.
So let me give you an example. If you look at this 4HR time frame at this point.
You might look at this and say, this is nothing significant.
The price is now in adjusting or forming a range over here.
Well, remember what I said, if the price is leaning against a higher time frame structure, that level becomes even more significant.
So you can see that over here…
This area over here is leaning against a daily timeframe level at this point over here.
This previous resistance, resistance, resistance is now acting as support.
So we can see that the consolidation that you saw earlier on the 4H timeframe, this portion over here.
It’s leaning against a higher timeframe, previous resistance, and support. And that’s a significant level.
And if you were to have your trades usually leaning against such a higher time frame structure, you will find that the probability of your trades, your entries will be improved.
So in this case, the market did break out, it retested this area of resistance before collapsing.
But that’s beside the point. The key thing I’m trying to share is paying attention to where the market structure is at on the higher time frame. If it’s leaning against the higher time frame, all the better.
So let me give you another example, because this concept it’s important again, the 30-year Treasury bond.
Let’s look at the daily timeframe and let’s look at the lower time frame. Let’s look at the eight-hour time frame.
You’ll notice that here, the price at this point retest at this area of support on the eight-hour time frame.
One thing to note is that if you look at the higher timeframe by the daily time frame, you know that that area coincides with a higher time frame structure.
Which is the retest of the 50MA over here.
So what you saw earlier there, that retest on the eight-hour time frame was this part over here.[/text_block]
[text_block style=”style_1.png” align=”left”]This means that the price could retest back to this area. Previous resistance and support and then continue back up higher that’s a good possibility that could happen.
In other words, If you want to set your stop-loss, it is not going to make sense to be putting your stops anyway here, or here.
Because when the pullback comes you will get stopped up. So the logical place will set your stops right, is at least right below this market structure over here.[/text_block]
[text_block style=”style_1.png” align=”left”]There is this area of resistance over here and there’s this tight build up over here. Notice that this price action is so different from the energy days released earlier.
This one with the energies is being stored. It’s being constricted, it’s being constrained.
It’s like ‘’let me out!!!’’.
We can see that this is the containing pattern that you want to look for. A build-up, a tight consolidation, low volatility, whatever you call it.
Just pay attention to this, this is where you want to get interested in buying the breakup.
This is where you know there is a potential for the move to move. And one more tip that I have for you is.
Whenever prices are forming a build-up, the 20MA before the breakup, the 20MA will start supporting the price. It would act as a support.
Where the price would tend to bounce off the 20MA, and you notice that phenomenon right over here where the price has to start respecting the 20MA:
This Is the resistance. This is the build-up that’s formed, and when you trade the breakout, do you want to trade break out away from build-up?
[text_block style=”style_1.png” align=”left”]You can have a buy stop order above this high or with our candle close above the highs, whichever you prefer.
Usually, if I see a tight built up, I just have buy stops orders above it. Go out test it and validate it yourself and see whether it’s true.
This is a powerful concept, let me just explain this once again with another example, because this is important. If you look at this, look left.
This over here, what is this?
Whenever I look at this chart, to me that is energy being released. And you don’t want to enter it when energy has been released because the power, the energy, everything is gone.
Really. It’s out. There’s nothing left.
You want to enter your trades where energy is being constrained, and you notice over here this price action is so different compared to the one you’ve seen earlier.
This is where energy is being stored, getting constricted, getting tight. It’s getting ready to breakout.
And again, a quick tip is the 20MA, usually, the price tends to respect it before the breakout, if it tends to respect it all the more that is like a big plus, you want to be paying attention to the breakout.
Don’t chase big moves, do this instead. Trade the first pullback when a market breaks out. There’s a good chance it might make a pullback.
And you can reference the swing high and swing low too, to set your stop loss. Or you can look for a build-up before the price breakout.
That’s another thing that you should do. Don’t chase big moves into the market because it’s usually probably too late to enter.