Okay folks, welcome back. This is lesson 7.2 of the January 2017 content, using limit entry techniques for long-term traders. Okay, we're looking at buying with a limit order, and much like we used for the buy stops, the monthly and or weekly should suggest institutional order flow.
We'll be seeking a PDRA above daily market price. The daily should post a bearish candle. The daily chart must close the candle with a down close and it is not valid while the daily chart candle is trading and or forming. And the buy limit is going to be placed at the bearish candle's close.
This is a daily candle. So we're looking at the daily high, the daily low, the daily open, and the daily close. We're going to be looking to enter a buy limit order.
at the close of the daily candle that's a down close while the market is bullish and we're expecting a higher price move in the asset class we're trading. What you're going to be seeing is that the market's already going to be undervalued in an already primarily bullish market condition. Preferably, this is going to be useful to you when the market's already shown a willingness to have a market structure break.
It's already started to move higher. It's already started to move higher. So, therefore...
Prices are really underway That's going to be opportunities when we start talking about swing trading We can utilize the information in that module to help get better fills on the long-term entries Closer to the turning points, but for this module really we're focusing on how you don't necessarily need the big turning points at the top or the bottoms you just need to meet in between and Be a long-term trader still and it capitalizes on a lot of pips a lot of points if you If you do these types of trades, it takes a long time for them to come to fruition and a long time for them to set up. But nonetheless, when we use a buy limit entry at the close, what we're doing is the very next day or the next candle, when it opens up, we're expecting price movement to move below that down candle's close. What we're actually doing is we're buying at a deeply undervalued price. It's already going to be oversold without requiring any indicators, but we're going to be buying at a deep, deep discount. When the market's predisposed to move higher, you're going to see in our examples how it nails down extremely, extremely awesome entry points.
I mean, they're so deep in discount and you get quick, immediate feedback, even on a daily basis, that you're on the right side of the marketplace and you start seeing profitability almost immediately. Case selling with limit orders, just like we had with the sell stops, the monthly and or weekly should suggest institutional order flow. We'll be seeking PDA raise below daily market price.
The daily should post a bullish candle and the daily chart must close the candle with an up close. It is not valid while the daily chart candle is trading and or forming. And the sell limit is going to be placed at the bullish candle's close.
So this candle again representing our daily candle. Up close is the daily high, the daily low, the close, and the open for that particular day. And we're going to be looking to have a sell limit order right there at the candles close. And what we're doing is essentially we're selling short in an overvalued or overbought condition in a market that's predisposed to go lower based on monthly and or weekly PDA raise that will draw price lower.
So institutional order flow should draw prices lower on the daily, but we're getting this up movement against what. Longer term institutional order flow is suggesting again on monthly and or weekly chart. So while price is moving higher for this particular day What we're doing is we're going to be looking to sell short at the next day But it has to be above this particular candles close now again We're not just selling on a limit on any up candle if we have an opinion about being bearish these conditions are best suited when we align them with a daily PD array. In other words, if there's a bearish order block, if there's a gap that it's traded into, if it's filled in a void, if it's traded above a recent high, okay, or it's retraced back into an old historical low, support broken analysis resistance. Those types of ideas.
We're not just indiscriminately going out and finding up candles and down candles. I should have mentioned this as well when we talked about the stop orders, but you're not just simply going in based on the candle. itself by itself it's not a be-all end-all and you know a system in and of itself you have to blend the PD arrays on the daily chart as well so by blending these things together with the higher time frame monthly and weekly pulling price one side or the other bullish or bearish respective on those higher time frame charts when we have those conditions also in opposite terms so basically what I'm saying is on monthly and weekly if you're expecting lower prices or bearish PD arrays that should draw price down to a discount.
What you're expecting to see on a daily is up movement to go to a short-term premium. When that occurs then you have really really low risk high probability entry patterns at your disposal and this is one of the most amazing ones you're going to see. By selling short on a limit above that candle is closed what you're doing is essentially getting that last little piece of market movement above.
Getting you that last little surge and many times when we look at day trades You're gonna see that that's many times what you'll see as the judah swing It'll open make the high in London and then sell off and then it'll be the beginning of a long long-term move in that particular Pair or asset. Okay, we're gonna go back to that Japanese yen example and we're gonna use this idea as well And you see we have the down candle and using the close our limit order to be a buyer you see how that transpires here each down candles close the next day it trades down below it you would be filled only limit going long and look at the responsiveness of price immediately after that there's one two three four five examples here on this daily timeframe and while it probably doesn't look exciting here probably doesn't feel like you know it's that big of a deal I can assure you when we get into two slides from now you'll see just how much of an importance this is but again what we're looking at is the weekly chart here you see how price was moving away from that 100 level and there was a bearish order block up around that 118 119 level and that was the weekly premium PD array that would draw price up to that level long long term and we saw a bullish order block down in the discount level at 100. So you saw the willingness to want to bounce off that level. When we go back down into a daily chart here, you can see in November during the post-election rally of Donald Trump's election in the U.S., price stabbed one more time down into that weekly bullish order block. Prior to that November dip, we saw a September rally away from a previous.
order block that was formed in August 2016. September we saw it retrade back down into it and using the down candle the very next day it did trade down below the close giving an amazing fill. Now what you're seeing here is these lines that are drawn right up from the down candle up into that red shaded area. That's that weekly PD array or bearish order block.
What that means is this price should be drawn up to that level in the weekly and from the low that was formed in September buying on a limit below the daily candles close from that point all the way up to the weekly PD array or bearish order block it's 1800 pips for that particular low the next one comes in around November 17th or thereabouts and you can see that that limit order below the daily close would have been filled as well and from that point up to the weekly weekly PD array up at the weekly bearish order block was 980 pips and then the next down close on this daily chart here again using the close of that down candle as a buy limit order entry point that next candle puts you in a position where it would have been 785 pip move the next down candle again comes in with a 600 pip rally and another one comes in at 500 pips and the last one right before it gets to the weekly pd array given a 360 pip price move. And again, buying below the candles close on a limit. You're buying that real deep suppressed, undervalued market.
And it's in a deep, deep, deep discount. And it will look to seek to move to a premium. And it's an amazing thing when you go through your charts and you look at this and start studying it.
And again, what we're looking at is daily timeframes. It's not that we're looking at hourly charts or 15 minute charts. And a lot of folks Assume just because we're on these higher timeframe charts.
There's not a lot of opportunities There isn't as many as you would see in terms of day trades or scalps. No, I would quickly agree with that. But there are plenty of opportunities when you're in these long term trends and you have a real clear indication it wants to move higher to a monthly or weekly level.
There's many opportunities you can get in there and get positioned and not have to get the high. And you can see here that move from the 980 pip move. That's essentially the equilibrium price point just below it. And even above the equilibrium price point, there was many opportunities.
where you could have got several hundred pips and whether you are a day trader scalp or whatever i mean those types of numbers are just simply not something to scoff at they're very respectable numbers so my question to you in closing is do you still think you need intraday trading to make pips hopefully after this teaching you'll quickly come to the conclusion that you do not need that so folks that felt that i'm only teaching day trading and short-term trading things this is the type of trading that you can find opportunities with, still maintain risk relatively low, and still find a payable framework for your trading ideas to pan out. And this is just one pair and one focus on a PD array on a weekly and monthly basis. And until next time, I wish you good luck and good trading.