Tag Archives: Entry

TTF Narrow Range Bar Entry

 

Let's say we have a market with a clear bearish bias.

Price then pulls back higher and reaches an area in which I'd be happy to enter a SHORT position.

Two of the key things I'm looking for are:

  1. Signs that the bulls have exhausted everything they've got.
  2. Signs that the late bulls, entering late in the pullback rally, will be under maximum stress and likely to give up on their trade.

 

<image: TTF Narrow Range Bar Entry>

One of the ways I love to see this play out is through a Trading Timeframe (TTF) Narrow Range Bar.

Let's see one in play…

<image: TTF Narrow Range Bar Entry>

Let's zoom in a little to see how the pullback develops…

<image: TTF Narrow Range Bar Entry>

<image: TTF Narrow Range Bar Entry>

<image: TTF Narrow Range Bar Entry>

<image: TTF Narrow Range Bar Entry>

<image: TTF Narrow Range Bar Entry>

<image: TTF Narrow Range Bar Entry>

Please note that I am NOT advocating buying or selling the break of every TTF Narrow Range bar.

The trade must be in a proper setup location, where follow through in your trade direction makes sense with regards to the structure of the market.

The trade must offer good reward:risk parameters. The Narrow Range bar entry will ensure low risk. The market structure though, MUST provide multiple-R opportunity.

While trading and waiting for lower timeframe price confirmation… make sure to also keep an eye on the TTF. It may just be proving an inability to move further into your setup area, offering you a nice low risk entry into your trade.

Happy trading,

Lance Beggs

 

PS. For more examples of this TTF Narrow Range Bar entry concept:

 


 

Seeking Entry on the Wholesale Side of the Market Structure

 

I absolutely LOVE IT when people send me charts and emails full of excitement at new discoveries or new ways of "seeing" the price movement.

I received one last week that I just had to share.

It's such a great example of seeking entry on the wholesale side of the market structure. I love it.

An email came from G.N. with the following chart. Of interest was the upthrust pattern allowing entry short, in line with the ideas discussed in prior articles – Professionals Traded Here and Confirmation is Risk.

(Note: The image here is compressed to fit the page. If you click on the image it will open an original-size image in your browser. Or refer to GBP/USD on the 2nd November, 1 min chart, if you wish to look at your own charting platform.)

<image: Seeking Entry on the Wholesale Side of the Market Structure>

Actually, let's zoom in a little to identify the upthrust area.

<image: Seeking Entry on the Wholesale Side of the Market Structure>

So here is what I ABSOLUTELY LOVED about receiving this image and email from GN:

<image: Seeking Entry on the Wholesale Side of the Market Structure>

<image: Seeking Entry on the Wholesale Side of the Market Structure>

<image: Seeking Entry on the Wholesale Side of the Market Structure>

This chart provides an awesome example of entry on the wholesale side of the market structure. Here's what I love about this particular trade idea:

<image: Seeking Entry on the Wholesale Side of the Market Structure>

<image: Seeking Entry on the Wholesale Side of the Market Structure>

<image: Seeking Entry on the Wholesale Side of the Market Structure>

<image: Seeking Entry on the Wholesale Side of the Market Structure>

<image: Seeking Entry on the Wholesale Side of the Market Structure>

<image: Seeking Entry on the Wholesale Side of the Market Structure>

Just beautiful!

It's been one of my favourite concepts for years.

The idea of watching breakouts against market bias for failure. And using that to trigger entry back in the direction of the original market bias.

Keep an eye out for it in your markets and your timeframes.

Happy trading,

Lance Beggs

 


 

Stop – Pause to Reassess – Reverse

 

I get asked from time to time whether I ever "stop and reverse" a trade.

That is, enter SHORT when stopped out of a LONG position. Or enter LONG when stopped out of a SHORT position.

The reality is that I don't do that often.

The failure of one trade is usually NOT an indication of potential in the opposite direction.

The only time there may be potential is when the CONTEXT suggests the new trade is a valid trade in its own right. So the trade validity has little (or nothing) to do with the failed trade preceding it.

For example, if I'm fading a strongly directional market and recognise that I'm wrong, then I might use the stop to reverse to a with-trend trade. In this case, the with-trend trade is a completely valid trade in its own right. It's a with-trend trade I'd be happy to take, even had I not taken the earlier counter-trend trade.

But as I said, I don't tend to do this often. It's not always easy to shift bias so quickly.

There is however a closely related trade, which is a little more common.

It's more of a "Stop – Pause to Reassess – Reverse".

A common place for these is a key level of some kind, such as an S/R level or range boundary, where we might be assessing two potential opposite biases through either a breakout failure or breakout pullback.

Let's look at one example:

<image: Stop - Pause to Reassess - Reverse>

<image: Stop - Pause to Reassess - Reverse>

<image: Stop - Pause to Reassess - Reverse>

<image: Stop - Pause to Reassess - Reverse>

<image: Stop - Pause to Reassess - Reverse>

<image: Stop - Pause to Reassess - Reverse>

<image: Stop - Pause to Reassess - Reverse>

 

Key points:

1. Failure of one trade does not imply potential in the opposite direction, unless the context suggests the new trade is a valid trade in its own right.

2. A stop and reverse does not need to happen at the same time. Often a better option is "Stop – Pause to Reassess – Reverse". Give yourself an opportunity to reassess the situation with a clear mind, as a result of having no exposure to the market.

Happy trading,

Lance Beggs

 


 

The Other Trader (5)

 

Let's continue with a series we started last year – the metagame – trading AGAINST other traders who find themselves on the wrong side of the market.

Because…

If I can't feel someone on the other side of the market getting it really wrong, there is no trade.

You can see the prior articles here if you missed them – OneTwoThreeFour.

Let's set up the scenario…

<image - metagame trading - the other trader 5>

<image - metagame trading - the other trader 5>

<image - metagame trading - the other trader 5>

<image - metagame trading - the other trader 5>

<image - metagame trading - the other trader 5>

(Source: YTC Price Action Trader Vol 2 Ch 3 P99-102)

<image - metagame trading - the other trader 5>

(Source: YTC Price Action Trader Vol 2 Ch 3 P145-153)

From a metagame perspective, this is the scenario we're looking at. We aim to place ourselves in the mindset of any trader who bought late in the move, at or soon after the breakout. Feel their stress build as price stalls. And stalls. And stalls. Feel their pain as their "sure thing" collapses back below the stall region. And find a way to profit from their pain.

<image - metagame trading - the other trader 5> 

Let's zoom in a bit. And take on the mindset of the novice retail trader who entered late in the move (let's say right on the break).

<image - metagame trading - the other trader 5>

<image - metagame trading - the other trader 5>

<image - metagame trading - the other trader 5>

<image - metagame trading - the other trader 5>

<image - metagame trading - the other trader 5>

Trading the metagame…

If I can't feel someone on the other side of the market getting it really wrong, there is no trade.

Fast, sudden price moves don't always continue.

Quite often, someone is getting trapped.

And that… is opportunity.

Go get 'em,

Lance Beggs

 


 

Trading Alongside the Uncertainty and Fear

 

I shared the following post via social media on Wednesday:

<image: What if it's ok to feel uncertain?> 

Without doubt, this is one of the key lessons we must learn on the way to becoming a professional trader.

And so I was incredibly pleased to get the following reply:

<image: What if instead we learn to operate alongside the uncertainty and fear?>

Brilliant!

Thanks A.H.

This is exactly the right approach to the presence of the fear and doubt.

1. Recognise the emotion.

Just briefly, bring your focus back from the external (charts) to the internal (your body and mind). Notice what you're feeling.

2. Acknowledge the emotion.

Accept it. You can't fight it. You may as well welcome it.

If it helps… verbalise it.

3. Understand the emotion.

What is it trying to tell you? There is information there. Find it!

4. Review the trade premise.

Often you will find that steps one to three will significantly reduce the severity of emotion.

So the final step – review the trade premise from an objective chart-based perspective.

With the emotion acknowledged and diminished, does the trade premise actually contain edge?

If so, go for it.

<image: What if instead we learn to operate alongside the uncertainty and fear?>

<image: What if instead we learn to operate alongside the uncertainty and fear?>

<image: What if instead we learn to operate alongside the uncertainty and fear?>

<image: What if instead we learn to operate alongside the uncertainty and fear?>

If it helps, consider creating a "pre-entry mantra" to shift your focus inside and recognise, acknowledge and understand any emotion that may impact upon your trading decisions and actions.

With experience (and of course proper risk control) fear and emotion will reduce. But it never completely goes away.

You can't fight it.

Accept it. And learn to work alongside it.

Happy trading,

Lance Beggs

 


 

Let It Fail First – Then Get In

 

Although we trade very differently, I am quite a fan of Al Brooks first book, "Reading Price Charts Bar by Bar".

One of his quotes which has stuck with me over the years is the following:

  • Countertrend setups in strong trends almost always fail and become great With Trend setups.

 

This quote came to mind earlier in the week, as I took a counter-trend entry against a strong trend, despite my predominant thought prior to entry being "This is too obvious. It has to be a trap!".

<Let it fail first - then get in>

The drop from point 2 was just over 30pts (120 ticks) in 15 minutes. Ok, it's maybe not the strongest trend. But there was very little opportunity in the way of pullback entries SHORT. And bears still felt in control.

<Let it fail first - then get in>

<Let it fail first - then get in>

<Let it fail first - then get in> 

And that's when the Al Brooks quote came to mind.

  • Countertrend setups in strong trends almost always fail and become great With Trend setups.

 

<Let it fail first - then get in>

The outcome:

<Let it fail first - then get in>

<Let it fail first - then get in>

<Let it fail first - then get in> 

Happy trading, 

Lance Beggs

 


 

Trade Opportunity at Spike Highs

 

The market has opened and rallied. Not with great strength. In fact it's quite slow. But it rallies with a clear bullish bias.

It's clear of all S/R levels, above the prior day's high resistance (now support) and well short of the next higher timeframe resistance level.

Trade Opportunity at Spike Highs

Trade opportunity in such a case is ideally sought in the bullish direction.

YTC Price Action Trader readers – the first and second principles apply here and we're looking ideally for PB/CPB opportunity, with the trend.

However, there are times when I'll also look to take counter-trend opportunity, within this market environment.

Not always. But sometimes it's just screaming out to be traded. This is one of those times.

And not with any intention of catching a reversal. Just a scalp from the edges back to the mean.

Here's what I was seeing. We'll look at the TTF first, but we'll follow that up with the HTF chart, because it stands out better there and is much easier to see.

Trade Opportunity at Spike Highs

Trade Opportunity at Spike Highs

Trade Opportunity at Spike Highs

Trade Opportunity at Spike Highs

Trade Opportunity at Spike Highs

Trade Opportunity at Spike Highs

Trade Opportunity at Spike Highs

Keep watch on the charts for anything unusual. Anything that is different.

It may just provide trade opportunity.

Happy trading,

Lance Beggs

 


 

Opportunity Exists where you find Frustrated Traders – Part 2

 

Feedback suggests that people got a lot out of last week's article, so let's continue with that topic one more time.

Check it out here if you missed it – http://yourtradingcoach.com/trading-process-and-strategy/opportunity-exists-where-you-find-frustrated-traders/

This was the general idea though –

I'm always looking at the market from the perspective of "the other trader".

In particular, seeking out the places on the chart where others might become frustrated.

Where is someone stuck out of a trade they wished they were in?

Where is someone stuck in a trade they wished they weren't in?

That's where I want to trade!

This concept can be applied on any timeframe. You can use it on the Trading Timeframe to find quality trade locations. You can use it on the Lower Timeframe to time your entry.

It's this Lower Timeframe application that I want to look at today.

Timing an entry at the point of maximum frustration for our poor friend, "the other trader".

Let's start with the general trade idea.

Opportunity exists where you find frustrated traders

And so let's now step through the data to see how this trade idea unfolded.

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Happy trading,

Lance Beggs

 


 

Opportunity Exists where you find Frustrated Traders

 

I'm always looking at the market from the perspective of "the other trader".

In particular, seeking out the places on the chart where others might become frustrated.

Where is someone stuck out of a trade they wished they were in?

Where is someone stuck in a trade they wished they weren't in?

That's where I want to trade!

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Happy trading,

Lance Beggs

 


 

An Entry Mindset with a Whole Lot Less Fear

 

The whole analysis process for a novice trader is aimed towards finding a winning trade.

Sure, they know intellectually that not all trades will win.

But surely this one… the one they worked so hard for… the one that all their analysis says is a good trade… it's just got to win!

And then they enter the trade…

An Entry Mindset with a Whole Lot Less Fear

Gripped by the fear that comes with every tick of price movement, they increase the risk of mismanaging the trade. They increase the likelihood of underperforming. And they risk potential damage to their self-belief.

What if there was another way?

What if you had a different mindset?

What if you stopped trying to find winners?

An Entry Mindset with a Whole Lot Less Fear

An Entry Mindset with a Whole Lot Less Fear

An Entry Mindset with a Whole Lot Less Fear

That's a key difference.

A novice is trying to find a trade that will win.

I'm trying to find an entry that is worthy of being one of twenty.

I don't need a winner.

I place all the odds in my favour. And I take the trade.

An Entry Mindset with a Whole Lot Less Fear

This is an entry that is worthy of being one of 20 within the group.

It doesn't need to be a winner.

The whole group of 20 needs to win.

So this trade just needs to get me off to a good start – profiting if it can, and just minimising the damage if it can't.

A slightly different mindset…. but with a whole lot less fear.

Happy trading,

Lance Beggs