The Ultimate Entry Model + Secret Tweak To Never Miss a Trade!

Summary

In this trading tutorial, the presenter shares a powerful entry model for catching early reversals in the market, ensuring traders never miss a move. The video explains the importance of identifying 'sweeps' above previous highs without body closures, and then using candlestick confirmation signals for entry. To avoid missing trades, the presenter advises traders to switch to lower timeframes for better retracement opportunities and optimal risk-reward setups. The video is filled with practical examples and encourages backtesting the concept for improved trading strategies.

Takeaways

• 📈 The video is focused on teaching viewers how to catch early reversals in the market to avoid missing out on trading opportunities.
• 🔑 The presenter shares their personal entry model, which is considered one of the most powerful for identifying entry points in trades.
• 🔍 The importance of 'body closure' is emphasized; a valid entry signal requires only a wick above a previous high without the body of the candle closing above it.
• 🚫 A formation with body closure above a high is not considered a valid entry signal according to the model.
• ⏱ The model is based on observing price action within a specific zone and requires a candle to sweep a high and then close below it, indicating a potential reversal.
• 🔄 To catch retracements and avoid missing trades, the presenter suggests dropping to a lower time frame after identifying a sweep on a higher time frame.
• 🕒 Examples are given to illustrate how to apply the model on different time frames, from 4-hour down to 1-minute charts, to refine entry points and risk-reward ratios.
• 📉 The video mentions that missing trades can be frustrating and lead to impulsive trading, which is why the entry model is crucial for precise trading decisions.
• 📊 The presenter advises viewers to backtest the concept and collect examples to understand and validate the model's effectiveness.
• 💬 The video encourages interaction by asking viewers to leave questions in the comments or contact the presenter via Twitter for further clarification.
• 🍀 The presenter wishes viewers happy trading and good luck, indicating a supportive and positive approach to trading education.

Q & A

What is the main topic of the video?

The main topic of the video is about how to catch early reversals in trading and never miss a move using a personal entry model and a secret way to find units for high-reward trades.

What problem does the video aim to solve for traders?

The video aims to solve the problem of traders missing trades due to the price moving without retracement, which can lead to impulsive trading.

What is the importance of 'body closure' in the context of the entry model discussed?

In the context of the entry model, 'body closure' is important because it signifies whether the price has truly reversed. A valid entry requires only a wick above the high without body closure, indicating a potential reversal.

Why is it preferable to see only a 'wick' above the high in the entry model?

Seeing only a 'wick' above the high without body closure is preferable because it indicates a stronger potential for a reversal. A body closure might suggest that the price has not fully reversed and could continue in the previous direction.

What is the 'CSS' mentioned in the video, and why is it significant?

The 'CSS' stands for 'candlestick setup'. It is significant because it is used to confirm the reversal pattern by waiting for the price to close back inside the range after the wick has occurred.

Why should traders look at lower time frames when there is no retracement on the higher time frame?

Traders should look at lower time frames to find the same reversal formation, which might provide a retracement and a better entry point with a tighter stop loss, thus increasing the potential reward-to-risk ratio.

What is the benefit of using a lower time frame for entry after identifying a reversal pattern?

Using a lower time frame for entry allows traders to enter trades at a better price, potentially with a tighter stop loss, which can lead to a better reward-to-risk ratio and help avoid missing trades.

How can traders ensure they do not miss trades when the price moves quickly without retracement?

Traders can ensure they do not miss trades by quickly checking lower time frames for the same reversal pattern and waiting for the CSS confirmation to take their entry.

What is the role of 'liquidity' in the context of the video?

In the context of the video, 'liquidity' refers to the market condition where there is a sudden influx of buying or selling that causes the price to move sharply. Traders position themselves before such expansions to catch quick moves.

What is the advice given for traders who want to backtest the concept presented in the video?

The advice given is to collect as many examples as possible of the reversal pattern and the entry model, and to backtest them to ensure the concept's validity and effectiveness in different market conditions.