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Entry Types

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100% found this document useful (1 vote)
2K views21 pages

Entry Types

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[Document subtitle]

ENTRY TYPE
BY ACTURY FOREX TEACHER PUBLISHED 2023
Entry Types Continuation Part 1

So when we are looking at the HTF, so it could be the daily, 4h, or 1h, now for me I
use 1h as my highest, which gives me a lot of opportunity and its just a great
timeframe to sort of base our trades around. Now for you can be the daily or the 4h,
it comes down to your own preference and could be the 4h or even a daily as your
highest timeframes.
But when we look at this diagram here, this is gonna be a HTF, so we are gonna callthis the 1h. So this
diagram here
So once we get a bullish OB (POI), as we can see here, so price came down but
then pushed up and bos, so we can see a clear shift in momentum and we know
potentially a clear shift and then bullish order flow from here.
Now once we get a bos this gives us a demand level or an OB within this. So when
price comes down to trade into this zone, for the very first time, this is in my opinion
not enough of a confluence for us to enter this trade and set a pending limit order.
So once price comes in, this is not enough of a confluence for me to be looking at
this to go long. I would rather wait for price to come in and see how price is delivered
and then look for our entry confirmations on a LTF.
Now a lot of smc traders would call that type of entry as a risk entry, but for me its
not something that I want to risk my money on, especially when we are trading on a
large sums of money.
What I would prefer to wait to see how price comes into that zone, and what I have
seen a lot more success with, is to wait to see how price comes into that zone, and
look for our entries on LTF.
So that why I will be not be looking at any sort of risk entries
So if we get into the different types of entries, we can see once we bos here, we
have this as our first demand level. So we are looking for longs within this sort of
demand level here. Now this on a LTF would look something like this. So this is
gonna be our LTF, so for me I execute trades on a 1m, and sometimes I go down to
the 30s. But we are gonna stick to the 1m.
So once price comes down and trades into this zone, we will usually see, LLs and
LHs on a LTF.

So what we will be waiting for is for price to push in and then we wanna see intent
for bullish movement. So we wanna see a nice bos. Now this would then give us and
entry as it would create an OB down here.

Now this is entry type 1 which is a single bos which basically means a single bos
and a single confluence, which means we are trading the first bos on a HTF, as we
can see on 1h, is the first bos. Now this could have previously been a downtrend
with then bos showing intent tapped into a demand level, so its a single confluenceand its a single bos
on the LTF
Now entry type 2 would be waiting for the double bos, which basically means we
wanna see a bos it could pullback, it hasn´t got to mitigate this level here, it could
pullback and then bos again.
Thats still considered a double bos for me, so that is a double bos and its a single a
confluence, because we are still trading at this 1h demand level, but we have double
confirmation on a LTF.
So one thing I would say for anyone who struggles with entries or takes too many
losses, definitely try avoid this entry here (type 1), because when price bos now
obviously it depends how it breaks, but it could be just a fake out and then to head
lower.
Its not too much confirmation, but it all comes down to how it breaks as well, but
what I would say for like the newbies or beginners is definitely wait for a double bos
if you are struggling with entries, as we will get into some more better trades as we
are waiting for more confluence, and we are actually starting to see bullish order flow
on our LTF, and we can see that we are being respected from the 1h demand level.
So entry type 3 is we are gonna be looking at this second demand level on HTF. So
we can see bos, we pulled back, we bos again. So on the HTF we are clearly
showing bullish intent and bullish order flow.
Now we can see we put down here on caption intent for HTF prices. What this
basically means is prices trading above this lows, and once this was broken here this
structure, price then bos to the upside, we pulled back, we bos again and we can
see we are now showing intent has priced failed to trade below this level, so its
showing us intent for higher prices.
So back to this third entry, we have a bos, so a second bos on 1h, so this is our
double confluence because this is our second demand level.
So we are just seeing more confluence for price to continue.
Now this pullback to second demand level, this is what it will look like or this is whatwe wanna see for
the trade to meet our entry rules
So now they will be trading inside the second demand level and the second bos.

Price again trading back down into it, and we will see LLs and LHs, we wanna wait
for a nice bos as we can see, and this would be our single bos, but with double
confluences, as we trade in the second demand.
Now entry type 4 we wanna wait for a double bos as we can see one bos, pullback,
second bos. Double bos and double confluence as we are trading at this second
demand.
This type 4 is taking to the extreme and waiting for a lot of confirmation, but if we are
waiting for this, then we are gonna get involved in some great trades, but we won´t
always get involved in the trade.
So for me, I do take trades with a single bos and a single confluence as
long as we are trading with the trend. But I do also

take a double bos as well, but again it comes down to how it breaks,
so we will need to do our testing on that. But like I say, ifwe are
struggling with entries, then the minimum that we shouldbe taking
is a double bos and then entries type 3 and 4.

So now that we have gone through this continuation trades, its important to know
that this is just drawings and this is textbook setups. They are not always gonna be
as clean as this.
So its about using own initiative to asking ourself what is price actually doing?

How is price bos?

Where is price likely to react from?

And then look for our entries from there, but this is textbook continuation trades.

So once we start seeing HTF bullish or bearish order flow, just like this, we wanna
look for the bos.
Where are the demand levels or supply levels?

Where is the momentum come in before the bos?

So what where did price start that caused the bos?


This is where price is likely to come back to mitigate it before continuing, so its
important to understand where price broke from, where did the move initiate from
Now we have gone through continuation entry types on our LTF. What we are gonnado now is get into a
slight variation, but there is still considered continuation entry types with the trend

So we are on EU on the 1h. Now this was a trade that I took, with a very good return.

So what are basically looking for, is still are our OB are most recent LH or in an
uptrend a HL.
In this example we are looking at a sell trade, so we have a LL, which was formed
with this move down. This is the move that bos this most recent LL.
So if we just mark it on, so we can see it, that was the low that was broken with that
move there.
So once we had that, we had our new LH, which would be up here, but then what we
know is we have OBs that we can trade from and refine which is exactly what we

have here. Now we can refine that on a 15m, but the concepts I wanna go through is
what happens after.

So what we can see is we put in that new LL with that move there, so we have our
AOI, our LH which we wanna look for sells if price comes to trade in.
But if price does one of this two things, so what we seen is we had this LL, price
pulled back and then it actually broke structure again with that move there.
So we can see price before coming into the LH, we had a second bos from the most
recent LL which is here.
So one this what Im always saying and is really important is its about how price
breaks. So is price breaking in the form of seeking liquidity or is it breaking with
momentum showing us that price doesn´t necessarily need to come back up to this
level and we are breaking with momentum. So we see an entry lower down or is it
liquidity seeking.

So how we can determine if its liquidity or momentum is simply by looking how it


breaks.

In this example what we can see is we have broken with wicks zero momentum, so
we can see corrective candles there is nothing behind it, apart from breaking the low
and then retracing, because we can see it is a corrective move, there is nothing
being left behind, there is no real supply zone or valid OB.

Because although we did close below that low, we can see as we have said its very
corrective, its a calm bos and we can see wicks, so that for me is just seeking
liquidity from anyone who is looking at that as an area to get short from.

Its breaking the low and as we already know, the highs and lows always get
manipulated and they always get taken out by ever so slightly before price reverses.
Now the reason for that is just seeking liquidity and there is nothing much else to it
apart from that. So what we can see is we had a corrective and a liquidity break.
So thats what we call it, so a liquidity break of that low and we still have this area up
here (OB) that we really need to be looking at, to look for shorts.

Because we can see prior to this move coming back up, we had the seeking of
liquidity and if we also wanna be extra what we can have on is this higher.
Now is not perfect, we have one higher and a second. So we do have EQH to some
degree, so some maybe looking to sell from here on EQH, so we have sell side
liquidity from the low and by side liquidity from the highest as well.

So people who are looking at this as trend LL, LH, they are looking to sell from the
most recent LH, but we can see as its liquidity, we have this supply zone up here,
and an unmitigated OB up here, which price is likely going to need to mitigate a
close of positions from larger interests and a stack of more orders at OB area.

So that is exactly what happened here, which is why price respected that area.
Now we can see a mitigation of this orders, price continued, we took liquidity from
this low and then we tapped into unmitigated area.
So this is one of my favourite entries, or entry types, because its plain liquidity,
understanding liquidity and how we can use it in our favour, and get involved in this
trades which is what myself and the other community members did. We get involved
in this trade, I believe I banked +20RR on this move here to the LL.

So just a recap this is still a continuation trade and that on LTF as we have seen in
part 1, we would get involved in this trade by LTF bos, whether that is gonna be a
double or single bos.
It would be a double confluence, because we have been bos, LL, LH, mitigation,
continuation. We are seeing clear order flow.
We left this supply zone unmitigated before, but everything else is pretty much
mitigated and clear downtrend.
We took liquidity, tapped into that area and then we continued to the new LL and as
we was saying about lows and highs getting manipulated, what we can see here we
did push down, further breaking that low then we had NFP I believe that was, whip
down and then we did reverse, but what I was saying a minute ago, about price only
coming into 10% of that area, that in some degree is not mitigated.

I will still trade it and we can still trade and with price coming into just this area here.
But what it basically means is we don´t really need to void this area for a future date in
price.
So what what does that mean?

Well if I look at this area, look how price come in again say, what is that? So first of
july to not even a week, so 5 days later that area is still respected, because they
more than likely had orders or still in the market which needed to be closed out, say
a bit of price, which is why a price then mitigated perfectly to the target literally to the
pip, and then we see a massive sell of down, which also bos, we can see that.

So a quick rule of thumb for me is, if we are looking at an areasay an OB


like this, the 50% mark of that supply of demand orOB level the 50%
mark. So the equilibrium is the area which I classify something as
mitigated
So meaning if this move was to come into the 50%, then I would classify that as a
completed transaction and a mitigation.

So if price was to come back in here as we have, I wouldn´t really be looking for
entries, because its already been mitigated to at least the 50%, but what we can see
is price didn´t mitigate to the 50%. So we can in this example still look for entries
once price comes in to the 50% as it did exactly here.
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