Today let's look at the art of entry timing… with one of my favourite ways to get into the market.

<image: Enter LONG when it can't go lower>

<image: Enter LONG when it can't go lower>

<image: Enter LONG when it can't go lower>

<image: Enter LONG when it can't go lower>

<image: Enter LONG when it can't go lower>

<image: Enter LONG when it can't go lower>

<image: Enter LONG when it can't go lower>

<image: Enter LONG when it can't go lower>

<image: Enter LONG when it can't go lower>

<image: Enter LONG when it can't go lower>

<image: Enter LONG when it can't go lower>

<image: Enter LONG when it can't go lower>

It's not the only way to enter. But it's one I love.

If the market can print a candle (or sequence of candles) which strongly suggest that "it's moving lower".

But then can't.

Enter LONG when it can't go lower!

Happy Trading,

Lance Beggs

 


 

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4 Comments

  1. Hi Sir,

    In one of the images above, you have mentioned “area of candle overlap”. How do you define this and what does this mean? thank you!

    1. Candle overlap is simply as suggested by the name – overlapping candles. Don’t overthink it. It’s essentially an area of very short-term congestion. If you looked at that price swing through a much lower timeframe chart it might appear as a pause or consolidation within the larger move. But on this trading timeframe, it’s just an area of overlap. Perhaps inside candles, engulfing candles. Perhaps neither of those, but just a small sequence of bars which mostly overlap each other, and preferably with a mix of red/green. It indicates that the movement in that swing was not easily achieved, as opposed to smooth price flow with little overlap and all one colour.

      As price starts the pullback I’m asking “where might it reasonably find some support in the price action of the prior swing”? Areas with the most overlap are the first that attract my attention.

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