Always keep the trend bias in mind. There are 4 entries we have. These entries happen live. So if your final confirmation for a trade is x time frame closure & setup, you will also take the trade on that timeframe.
Candle flip (or simply flip): The live candle goes from flipping bearish to bullish. Typically only taken when there is a steep enough wick down.
Break of current highs/lows: The live candle goes to create a top wick first without creating a bottom wick yet then comes and makes deeper wick down and you take it on the re break of its recently established highs.
Break of previous highs/lows: Taking it as the candle is breaking the previous “confirmation candles" high. This is typically done utilizing buy/sell stops to get the most precise entry.
Celery plays. A candle closes bearish but still above the recently broken out of resistance. It respected resistance. You take it when the live candle is breaking that high.
Breakout Setup entries (bullish):
Celery play is when a resistance is formed (usually doji) right after a breakout candle. The next candle then closes bearish, but above the resistance we just broke out of. In this scenario, we place a buy stop above the highs of the resistance candles, anticipating and break of the highs and drive up.
To be clear, we are talking about bullish breakouts only. The reverse is true for the bearish alternative.
If a candle breaks out of a range and the first thing the next candle does is move down with no top wick yet, if its a steep bottom wick we can take it on the flip of the candle (flip is when a bearish candle turns bullish or vice versa). If it does not create a steep bottom wick, and it is a small bottom wick, for extra confirmation we can take it on the break of the previous candles high. If the candle creates a small top wick, then goes down, then reflips up again, instead of taking it on the reflip, we will take it on the break of its own highs it just established.
Fakeout Setup entries (bullish):
This occurs typically on range one breakouts (which you will learn soon), during a bullish trend price breaks the higherlow (creating a breakout) then the following candle closes back into the range. For this scenario
Once the fake out setup entry occurs the same rules apply for the break of current H/L, flip and break of previous H/L.
Onion Setup entries (bullish)
The onion setup is usually seen in a play like this: the 4 hour breaks and closes, out of a range we have a pull back and form a lower time frame support above previously broken resistance. (15m,30m,1h)
Same rules apply for the entries. If an onion forms we can now consider that new 5,15,30m candle as a support or higher low.
For entries we look for the onion to form and treat that as the “breakout” candle.
It’s extra important to note that since this isn’t exactly a clean “breakout” but a minor support formed we typically place buy stops above the break of the support candle that just formed in order to confirm the continuation of the trend up.
Once you understand these fundamentals of the market. Everything else should start making sense like puzzle pieces. As you’ll learn more in the liquidity section of the course, all these theories are correlated and just based off of a series of price respecting zones, or breaking out of ranges, pulling back, and continuing for a trend. Aka, ranges, breakouts, fakeouts and tests.
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