PRICE ACTION PART 1

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HOW TO ENTER THE TRADE WITH THREE

CONFIRMATIONS
1. Market structure
2. Area of value
3. Entry trigger

#1: Structure of the Market

Should you buy, sell, or stay out?

That’s why the first thing to do is identify the market structure as it tells
you what to do.

“Is the market in an uptrend, downtrend, or range?”

Once you know the market structure, then you’ll know what to do.
For example:
If the market is in an uptrend, you look to buy only.
If the market is in a downtrend, you look to sell only.
If the market is in a range, you can buy and sell.

#2: Area of value

Now, identifying the market structure alone isn’t enough.

Because you also need to know where to enter your trade.
Now you’re wondering:
“There are so many places to enter a trade. Which one should I choose?”
Well, you want to trade from an area of value so you can buy low and sell high.
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For example:

• Support and Resistance

• Respected Moving Average
• Trendline
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#3: Trigger for Entry

Now You know what to do (identify market structure) and where to enter
(area of value).
Now the final part of the equation is to know when to enter.
Personally, I like to enter when the market has shown signals of reversal —
thus confirming my bias.
This can be in the form of reversal price patterns like:

• Hammer and Shooting Star

• Bullish and Bearish Engulfing patterns
• False Break
• Elephant Bar (big green/Red Bar)

T-Bond 4-hour: Identify the market structure

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T-Bond 4-hour: Wait for the price to approach an area of value

T-Bond 4-hour: Enter on a valid entry trigger

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