Transcript for:
Mastering Trading Strategy: Entries and Exits

what is going on guys today we're going to elaborate a little more on entries and exits and when we're going to look for these entries and exits uh just based off of our charts okay so um we've already talked about splits we've talked about imbalances how we find these zones so we're going to go completely into you know another time frame uh or replay mode okay and I and I do want to talk about how I'm usually looking for these entries and exits when it comes uh to based off my chart right so the first thing that I'm doing right is is obviously we're starting on a bigger time frame so these are key points you need to take away right now because they're they're very important points okay so we are going to start on a bigger time frame and what we don't want to do is say uh we're looking for our zones you we better not be going all the way down here to go look for zones right because we're on a 4our time frame uh if your marking zones way down here or way up here guys you have to understand trading is something that you have to be like for example there's a zone right here right I'm not going to go out of my way to Mark a Zone that's 2,000 ticks away CU when we come back to that zone if it's in a week from now right I'm going to forget why that zone was a Zone and I want to have a fresh mind on why the Zone was a Zone I don't want to just be marking zones and wondering why it was a Zone okay I want to always make sure I know why it's a Zone period all right so we we're going to focus just on our area that we're at we don't have to over complicate things and go chart all the way down there and go figure out what was down there because it does not matter we're not going to go into that area anytime soon now again let's I'm going to test your guys' skills we have a basic candle here we have the upper Wick this looks like an aoi is it an aoi no exactly because the wick is too big so that is not a Zone although it looks like one it is not one okay so we're not going to mark that we're going to keep breaking it down okay and we might run into a problem where we don't find any zones you never know okay we'll see right now okay we found our first Zone it's a 30 minute you open the lowest point of the weake we have our three properties make sure you label the zone so I'm going to label this as a 30 minute okay and we have our three properties we have one okay property one property two property three okay and remember the concepts we talked about in the in in the video about imbalances and 50% levels right so if we come into the zone I'm already going to start planning what I'm going to do all right so I'm telling myself and and check out how I create this plan okay I'm going to say to myself okay we have a 30 minute Zone it looks very good we have 50% we have uh level one level two all right so what I'm going to say is if it comes into level one okay there's no aoi on this I mean the aoi is too close to the open so I'm not going to Mark the aoi okay so that's why I didn't mark it if the aoi was right here I would have marked it but the aoi is not anywhere to be found so I'm not going to Mark the aoi so what I'm going to do is I'm going to start creating my plan I'm going to say to myself okay if we come into that 30 minute okay I'm not taking long I don't want to take long at level one I usually don't take Longs at level one I don't know why I don't like it I like to wait till 50% and then I take to take my trade so I'm going to wait till 50% hits um if we bounce and we get a structure some type of structure we're playing long okay now we break 50% and we get some type of retest play the short okay um if we have a breakthrough to the downside I'm going to wait to see if it's an aggressive breakthrough so that means if we're having an aggressive breakthrough like this so the when I say aggressive breakthrough I want something that happens like for example if the if the Breakthrough is from a candle that opens here and it's right here to me that's not an aggressive breakthrough I'm not playing it right but if it's an aggressive breakthrough that started from here and the candle's just going going going I'm playing the short because my risk as soon as we break the split I'm break I'm playing the short because my risk is so tight on this right it could just it it could come back a little bit as long as it retest it goes down but if I play the split the way that I want to play it because we're having that aggressive breakthrough from the top I could go from here and I look how time my stop can be on this right it can be literally 30 ticks even with that kind of entry and we can play it all the way down okay so that's pretty solid so that's my plan it's a simple plan in this Zone 50% I'm just going to take a look at the 50% marks and then I'm going to decide what I want to do right so we don't need bigger time frame zones because we have our concepts of imbalances splits and everything else that we we need so we don't need anything else right we're going to take a look at a 15minute very quick um so it looks like this 30 minutes also 50 minute but since it's already a 30 minute I'm going to leave it on the 50 minute I don't need to put it on another time frame okay I don't need to put it on another time frames I could just leave it 30 minute and 15 minute okay but what I do want to do though is I mean this looks like a zone right uh the thing I don't like about this and you guys are already going to know this there's a fight down here I don't like that fight because the basing candle ratio to that wig I it just doesn't make sense I don't want that type of aggressive Zone I'd rather go into a 10-minute and kind of see what's going on over here 10-minute looks a lot better CU this candle's more aggressive you see what I'm talking about it's it's about finding uh something that suits you and makes you feel comfortable cuz that 10 minute and 15 minute are completely different right this 15minute red is a lot shorter and when we go on the 10 minute it looks a lot more aggressive like I don't know you see the aggressiveness in that candle even though there's a battle down here this candle again is very aggressive so for me it's considered a zoom all right we're going to go on a 5 minute oh and then look what we did so now that we have on a 5 minute I see something even better I'm going to mark this as my 5 minute because it looks a lot cleaner a lot better okay okay it's a lot smaller too so that's the concept I was telling you guys earlier is you need to learn how to focus on the smaller zones even if it's a f minute Zone okay we're going to focus on the five minute because then we're going to look for our imbalances and our splits and everything else that we need to look for so now we got to find our imbalances where's our imbalance okay our imbalance is on top of here so this is our split okay this is the imbalance that needs to be filled over here the Wicks are imbalances too so we got to get filled up there cool cool and then over here this is not really a split because there's no imbalance below a lot of you guys would have probably marked this as a split don't do that I mean you're not going to be chasing a move uh like you know 20 tick move right no it's not an imbalance below I mean we in imbalance we would see a straight straight straight straight line so I'm only going to mark that imbalance if we fall we fall I'm only going to focus on 50% that's just my theory so that's my plan game plan is set you see how it's just so simple right I'm not over complicating like oh we're going to do this oh we're going to do that oh when we come here we're going to come here no I'm not over complicating it I'm just keeping it simple I'm keeping it short right so let's see what happens here D okay oh I love replay mode but that's the aggressive move I was talking about when you see aggression like that like just coming straight up Take the Long right we would have taken the long we talked about it we wrote the split right there we would have taking that long to fill the inbalance because the thing is you guys have to understand that like let's say you would have taken the long and then it would came back down you could have easily caught the short right on the retest and then you would have caught the short and you would have cover that loss that's why I'm always consistently moving like this when I'm trading guys I'm long guys I'm short long I'm short I'm long short because I'm constantly looking at these splits and imbalances being filled into the zone so now we're going to focus on this area so now we're at a 5 minute and we're going into that 50% level let's see what happens here okay 50% so now we have to focus on our reaction here at 50% because we already filled them in Balance right you could have caught that move because it was aggressive that would have been beautiful literally oh my gosh so 50% what are we going to do here and yes I'm on a five minute time frame okay so the reason I don't want to use the one minute is I don't want to get faked out right so this was good we formed the split but I don't want to get faked out on a one minute I really don't okay because then you're going to be looking at the one minute instead of the 5 minute because everything is perception right if you're looking at a 1 minute you're going to be focused on what is happening on the one minute instead of what's happening on the 5 minute you can look at the one minute when you're in the trade but I like to focus on the 5 minute okay it's a lot better and it makes your entries a lot better it's been it's helping a lot Ever Since switching to a 5em minute time frame I'm able to just hold the trade longer you know without having to worry about certain things when you're on the one minute you're going to have a lot of this junk right d du up and down up and down up and down up and down that's why you got to be you just got to be careful okay so we're seeing it in this perspective right we come into the 50 uh the the the 50% area and let's see if we get that rejection okay so boom this is what we want we want that balance okay so now we understand that we're kind of forming a split here okay yep we formed the split we're above 50% now so meaning that now we're looking for Longs inside of the supply so you guys see how we completely switch from short to long so if this would have broken into the downside right from here I would have taken the short and it still does it I'm going to take the short we're going to see right now though okay retest of that at this point I would take the long I would have taken the long at the retest and let's see what would have happened okay so oh Market would have closed but that long would have been good let's see what happens after yeah it would have it would have kept going o that is beautiful right from the 50% area I mean it just keeps going though you guys can see that I mean we're focused on those zones and the splits and everything that that kind of mies up the strategy which is the splits the zones the 50% levels understanding when to go long understanding when to go short understanding when to play price so that would have been a a very nice trade let's go into another example here um let's see if we can find another one so let's go into let's go your more back boom boom boom I don't want to look okay are we is this alltime highs so yeah it is so let let's uh let's go back like this let's go I'm going to close my eyes so you guys don't think I'm cheating ready here we go did click that did it click yeah maybe anyway can we go on a five minute on here let's see yeah so we're good okay um to this is April 16th oh this's going to be tough so check this out um we're going to look for that zone so look I'm not going to mark that Supply I'm we're not going a th ticks into the sky okay I don't really care about that but we do have a demand Zone down there and that demand zone is probably not super far gone from here I'm going to mark that I mean it's in that range so check it out we're on a on a bigger time frame we're on a 4 hour we see the aoi right okay now we're we're finally starting to have areas of Interest we have our Zone and it's a 4H hour okay I already told you guys how to Mark zones if you need help marking zones go back to refer to the zones video okay uh very nice move aggressive up very nice Bing candle we have everything we need and we're bouncing at the aoi perfect once we break that aoi guess what I'm already taking short so another way to take an entry break of aoi I am thinking short period okay nothing so that's my first plan that I've already created in my head let's go down see if we find anything else this candle's not closed yet okay but it's breaking below aoi you know what that means we're probably going to hit 50% unless we bounce at property one uh um uh let's see if this is also a 3H hour it might be a 3 hour it is but the 4 Hour I like the 4 Hour better because it has the aoi and then we have a 2hour over [Music] here okay and then we have see we have anything on the one hour then we we'll start so this one this this could have been a 1 hour but it's yeah just no there's a fight down here that kind of makes look a little weird but the it wak and it's just too small we don't want we want to focus on zones that we can actually trade you know so here you go we do have a smaller zone so again what we're going to do check it out we're going to grabb the smaller Zone okay so the 1 hour is smaller than the 4 Hour but we understand there's a 4 Hour in here which gives us a lot more confidence but we're going to Mark the 1 hour because it's a lot smaller okay we want to focus on smaller this is not a Zone the basing is too big U Let's see we have anything over here doesn't really look like it 45 minute doesn't look like it I want to see if it's smaller over here nope it's the same okay oh I see something now we have a 30 minute right here okay so we're going to mark this as our 30 minute and then we're going to also put AI over here okay and then we're going to put there's looks like there's an imbalance here but we don't fully know that yet so what we're going to do is we're going to put a 15 minute um there a 15 minute here I'm going to leave the 30 minute like it's almost in the same area uhuh so you guys see how I'm analyzing this and making sure that I got everything I need to I'm not just going through it super fast right we're just analyzing everything we need uh see this could have been a 30 minute but what's wrong with this guys the zone is too big we don't need that right now we're going to go into a five minute time frame and now we're going to figure out what's going on over here because it's choppy we don't really have any oh this I love this because it gives you guys some real uh uh uh things that you guys can actually focus on so we take a look at this right we have a 5 minutes Zone here okay that we're already breaking and then we have a 5 minute Zone here what am I going to do in this situation okay cuz this looks like it's already been to Breaking so what I'm going to do is I'm going to delete this one okay cuz this one worked the first time like look we came in we bounced okay that would have been good second time we're already breaking through so what I'm going to do is I'm not going to focus on that zone anymore because I'm not even going to play short because we have a zone right under you see the logic that I'm using behind this I'm going to play this because below this there's actually a split right here at 50% there's a split so I know that that 50% level a split and I know we break below this we fill the imbalance and we break below this we go all the way into 30 minute so I can potentially catch if I play a short here 134 ticks that's already my mindset you see what I'm talking about and I don't have to worry about this because this is already formed there's an imbalance above too and there's a split right here as well okay so this is a split to fill imbalance above do we form a split right now we will see okay so I have my charts look how clean it is so simple again I mean there's really nothing down here if we break this um yeah I can't even go all the way back there with a 5 minute I'm not going to not worth it I'm going focus on this right here Oo we broke the we filled the imbalance into the aoi I love how the one minute mov so fast but you see what I talked about earlier the aggression right we had aggressive aggressive aggressive breakthrough of 50% play the short played all the way down to aoi do we break aoi we'll see right now look retest of 50% that's that's why I said leave the 50% see how it reacts to it first and then delete it so at this point you would delete it but you would be you would have already caught the retest we break we bounced that aoi retest 50% break through the retest and if we break 30% here uh we have to be careful at the low that's all I would say low is always a fake out um yeah cuz we're still bouncing now we created a split to the upside this 30 minutes still valid but now guess what if we break this right here okay I'm going long with aggression let's go just to fill in Balance all the way up there we's see what happens or we might just reject y split form split was used as to the downside fake out of the low now we're probably um going to continue down all the way into 50% of the 1 hour right there 50% of this 1 hour see how we stall that AI pretty simple right so this is again where I make another decision right and this is a pretty big zone so this is kind of the zone I was telling you guys we don't want them and because they're just too big you know the risk increases in zones like this so we want to be able to find these zones in smaller time frames which again maybe yeah look we would have had it on a 15minute okay so we can play it much smaller rather than having to play it with 156 ticks I'd rather play it with a smaller you know range rather than playing it with 150 ticks all right so we have the aoi we have the zone property one property two all right we break 50% now we could potentially take that short let's see if we retest or we continue down retest or continue down so that was the fake out it went to property three broke back above 50% what does that mean we talked about this in the split video it means long right so even if you would have taken the short because this move was aggressive and we talked about taking the move on an aggressive right and you but you would have had a tight stop loss on this right so you would have had a very tight stop on this okay you could have had 30 tick stop and as soon as you realize or actually maybe you would even caught 50 ticks yeah you would have caught your whole move here so it wouldn't have matter but let's say you caught the move over here right super late I don't know why you would get it under you have to try to get it in the zone right you would still caught your move I mean 50 ticks is our first TP all the time but either way let's say you missed it right and now we're back above 50% you should be taking the long you know so it's so simple yet could be so confusing for some of you guys if you guys really don't understand it okay or understand what you're doing all right so we we want to make sure that we understand everything completely from the top to the bottom okay how the splits are being formed right it's the it's called the forming split okay and we're going to elaborate a little more on that too I'll make a video on that on forming splits but uh we want to see the splits that are forming I talked about in the splits video okay where um for example a 5 minute time frame and we're looking for those for splits uh so basically check this out right we can't really have one here because there's no imbalances right but this like I wouldn't this is a split but I wouldn't mark it cuz I unless it's 100 TI yeah I marked this as a split so that's a split right cuz there's an imbalance above that's what makes the split it got filled look at it it gets filled all guys about like 99% of the time these splits are these imbalance are going to get filled look it got filled boom right into exactly where we said got filled literally you know like it's just about you being smart and taking that entry right and that's why the psychology behind this is you need to be able to be smart and stop being afraid to take the trade okay because this comes like you can learn this strategy from the top all the way down okay and that's not going to make you successful was learning the strategy you need to learn how to be an aggressor okay stop being a conservative Trader you're not going to make any money I'm Sor being conservative with this strategy at least right if you want to be conservative this strategy is not for you cuz with this strategy it's going to require you to be aggressive okay everything that I've done in trading so far I've traded many I've traded conservative before when I first got to supply and demand I was a very conservative Trader I would wait I would wait until Z almost hit all the time right and I would make money but then I would lose and now I get impatient and I'm more and I realized throughout the years of me trading of having so many years of trading I realized that my personality is more of an aggressive type personality I'm more of a person that likes to be the aggressor I like to say you know what uh I I am going to approach the market as soon as we hit these levels I am taking trades and when you end up mixing this with orderflow o guys it is the golden Strat that you've been waiting for it is heaven literally okay so I take a look at this and I start saying to myself like sometimes I look at this and I I'm saying like damn like this is so good you see my my trades on Monday I mean someone who doesn't understand is obviously going to think it's gambling because they don't understand how the market works right but most people you got to realize to stop worrying about what other people say because most people that say it's gambling they don't even have an eval account they've never gotten pay out in their life and they're not profitable Traders right so what is an unprofitable Trader to tell a profitable Trader nothing okay so stop worrying about unprofitable people telling you how to be profitable or that it's not going to work because they're not profitable they don't have the keys to success when it comes to trading you need to learn how to focus on your own and changing who you are as a Trader right when when when you struggle with something in life for example let's say you are just in alcohol olic or let's say you are a drug addict or let's say you are a very disorganized person right in life okay and you want to change okay what is that first thing you have to recognize to change what's the first thing you have to recognize to change is that you're that type of person right and then you'll be able to change it's the same thing with training right now maybe you're in this process of like dang I understand the strategy but I'm afraid to take the trade I just don't know when to pull the trigger right and you have to start understanding that the market there's no magical structure that's going to be formed there's no magical uh uh uh uh thing that's going to pop out on your screen no magical buy and sell indicator that's going to pop on your screen telling you to buy now right no one knows when no one knows where we know our strategy we know the order flow we know the volume we know the momentum so we can only use what we know all right and keep that in mind always we can only use what we know now the game is not about the strategy that you have but it's more about the risk management you have right so for example if I would have taken a long and this is exactly why it's okay to reverse positions now I've been i' I've gone on tilt before where I'm constantly reversing positions and you that's not what you want to do at all okay you don't want to constantly go short go long go short go long cuz we're bouncing back and forth you need to find what you want to do and stick to that as long as you can until something else happens right cuz you don't want to be switching you don't want to be oh guys I'm long and then oh guys I'm short oh guys then I'm long oh guys then I'm short because you you feel like it's flipping okay and that usually happens in a choppy market so you begin to be choppy just step away from the charts you don't need to trade into a choppy Market okay you need to relax a little bit all right we need to trade in in in in in regular market conditions all right so if we were to go in this trade right we we see the Breakthrough see how the the momentum started from down here that's when I would tell you to go in this trade this is a trade that I would have gone in as soon as we broke out because the momentum didn't start breaking out here right it didn't close and then start breaking out here it started going up here boom I'm in the trade I have my my entry as close as I can to that split okay my stop loss boom I have it right under the split I'm playing it very safe okay and I'm writing that trade up all the way to fil that and balance at least or maybe 50 ticks I just want to build my buffer okay we'll talk about that in the next upcoming videos of building buffers and all that but like we're not like the thing you have to understand about this guys is you're not going to catch the whole damn trade you know I I I meet new traders that are always trying to go for the whole imbalanced field bro chill you have to learn how to hit base hits before you hit a home run the Home Run is going to come when you least expect it not when you're trying when you're trying you're not going to hit the Home Run it's the psychology behind it you're just not going to hit a home run okay when you're trying to hit a home run okay remember that but when your hitting base hits and all of a sudden for example I let's say I was going for and this is why I never use hard TPS I only use a hard stop if if I was going for this trade and this started pumping up when we start going up up up up into 55 ticks and then all of a sudden I don't have a hard TP I can hold this trade I'm like guys let's keep pumping guys let's keep going all the way to 100 tick then I can TP and that's how I usually catch my big trades because I only have a hard stop loss and I let my TP runs just like you guys sometimes let your stop losses run I let my TP runs it's vice versa you know so we see that and then boom it's just beautiful trade you know beautiful and and it works out so perfect right and then this split would have been invalidated so this wouldn't have worked anymore okay so we wouldn't have known that this short was coming because there was no split maybe there were zones that could have told us let's see if there was a zone that could have indicated this okay let's see so it doesn't look like it oh yep here we go aoi right here on the 10 minute but it didn't go necessarily all the way in there it went very close to it the aoi so that still would have been a tough trade to catch you're not going to catch every trade we did have a five minute here though CU this was the end of the imbalance so yeah 50% hit you're right the aoi was broken on this okay we went into 50% aoi was broken uh that that that would have been easy money Easy Money simple see the thing like I I keep telling you guys over and over again it's it's so simple yet the only ones to complicate it are yourselves right we can continuously mark up our zones we can continuously learn about splits we can continuously learn about everything that we have have on our charts but it's all going to come down to how you put it into your perception how you put it into your vision of trading and creating a plan right which we're going to get more into detail of but it's going to come down to how you look at it right um don't be afraid to take the trade you need to learn how to be the aggressor as starting of today especially after watching this video I want you whenever you go on the market to be the aggressor to be the one who takes control right stop letting the market take control of your emotions stop letting the market dictate what you're going to do because you don't act off what you think is going to happen you act off what the charts is telling you and that comes with volume your strategy and everything that is surrounded with your strategy okay that's what you need guys to need to learn to start doing so if I see a split for example Market's about to open today right and I see right here that we have a split if we break above obviously we know that 3:00 a.m. uh when Market opens on a Sunday there's a lot of fake outs you know so it I'm not going to try to catch the first move to the upside because I'm going to think that's going to fake out we're going to get under the split and then I'm going to play the short to try to fill this imbalance down here so you see how my mindset works it also comes with understanding how the market moves on certain days Mondays is choppy so this strategy is not going to work when we're choppy right no strategy is almost going to work when we're choppy okay most traders that I've seen trading a choppy day including myself we fa right we can't seem to get it right okay so we want to try to avoid choppy days as much as we possibly can okay but continue to play the splits and don't be afraid because it's all a numbers game and when I say it's all a numbers game it's not really about you losing that's where people get confused and that's what I'm going to talk about in the next video where it's not about losing and it's not even about winning either because sometimes again we can it's so so easy for us to get caught up in oh I got to win this many trades oh I got to win this many times for me to be a successful Trader and we get caught up in the idea that we got to win we got to win right we get caught up in the idea that if we get in a trade it has to go in the direction that we picked right away what we don't understand is that's not the market so whoever came into when you came to trading whoever told you that they lied to you that's not the market right trades the trading is something that so like it things will happen and things won't happen right so you can't control what's going to what the candles are going to do you don't you can't control what kind of news is going to be released but what you can control is your risk and what you can't control is your size right so what you need to focus on is what you can control not what you can't control okay and in the next video we we'll overview that a little bit more so now I appreciate you guys for coming on watching understand a little more about entries and exits because it's very important for you guys to understand these Concepts and get uh moving with it so you guys have any questions just let me know and we will talk to each other pretty soon