[00:00] How's it going everyone and welcome back to another video. In this video we are going to talk about positional entries, or positioning yourself for an expansion candle prior to the formation of its wick. Let's get into the video.
[00:24] So, what do we know about the fractal model? We first need to wait for a higher timeframe candle closure and then we look for a lower timeframe change in the state of delivery. Now, we're going to pause for a second, go into this lower timeframe and notice we already have
[00:38] a change in the state of delivery. Now, for my model, I'm not going to look to trade that until we form a continuation in this higher timeframe candle closure. What do we notice about this higher timeframe candle closure? We have already formed a new protected swing right near the
[00:53] closure of this candle 2. So I can go into candle 3 with the anticipation that if we're going to have a small wick that supports expansion lower, we shouldn't take out this high. So what does that mean? I could either 1. Wait for an inter-candle change in the state of delivery or a continuation
[01:10] to form this wick or how many times have you taken a trade or missed a trade because it just expands right away. So this is my expectation is it could retrace back up into this area or it could just expand lower. But if I don't want to miss that move in the sake that it does just expand
[01:26] right away at the open, I can go ahead and take an entry right at the open or positioning myself for that candle 3 with my stop on a protected swing in candle 2. Now if you notice, this stop
[01:38] on candle 2 is above the EQ of candle 2. I want to see that above the EQ. I want to see it in a spot where it should be protected. But here's the anticipation. This is what a positional entry is. I'm just entering at the open, positioning myself for that expansion under the anticipation that price shouldn't go take out this high if it is going to expand.
[01:59] And there we get the expansion. Now let's say I don't take this positional entry. Are there other entries in here? Sure, we have that entry candle change in the stated delivery and another continuation lower. But just to review, what is a positional entry?
[02:12] A positional entry is when we have a protected swing going into the open of a new higher time frame candle. This is where I don't want to miss the trade if candle 3 or that continuation candle is just going to expand right away.
[02:24] So I will position myself or take an entry at the open, put my spot on that protected swing in candle 2 generally, and then allow the expansion to occur or the wick to form. Let's get into TradingView and go over a few examples of this.
[02:38] So here we are in our first example. And what do we have? We have a candle 2 closure. Do we have a change in the state of delivery? We do right here. Now what do we notice? Before the open of candle 3 here, we form a protected swing.
[02:52] Why is that? We reach into this fair value gap, and then we close through the series of up-closed candles that made that high. So going into candle 3 here we already have a protected swing that we want to see hold if price was going to form a small wick and then expand lower
[03:10] So we don't know, and ideally we wouldn't want to see price continue to consolidate to form a wick in here, so we could go ahead and look to take an entry right on the open of this new higher time frame candle, or put our stop on that protected swing, and then look for our 2R.
[03:25] Now why are we trading away from this high? There is an S&P on the higher time frames. Let's see what happens here. You can see we do form a new continuation, but you don't know if that is going to happen or if it's just going to expand away. Let's see what happens.
[03:40] And there we go and hit R2R. So obviously price didn't just expand away, but many times you will lose opportunities if you're always waiting for that inter-candle change in the state of delivery. Let's get into another example.
[03:53] So here we are in another example. What do you notice we have? We have a four-hour candle to closure. We want to check, do we have a change in the state of delivery? We do. So you can see my model printed out, mark it as a candle to closure.
[04:08] But what do we notice about this candle 3? We can look left here. What do we have? We have a new protected swing that has formed. It went into this fair value gap. We have closed over the series of downclosed candles into that fair value gap, forming
[04:21] a protected swing in this fair value gap. So going into the open of this new higher time frame candle, we want to see this equilibrium and respected as marked out with this P spot here. If you notice, this protected swing is right below
[04:34] that P spot. That is ideal. We have a protected swing that protects the area that we want to see respected. So what could we look for here? So we could actually enter the open of this higher time frame candle, put our stop on that protected swing, and then look for our 2R or two of these
[04:49] liquidity points marked out by the indicator. So that could be our positional entry. We are entering at the open of candle 3, putting our stop on a protected swing that also covers the area that
[05:01] we want to see respected, or that EQ, and then we're going to see if this plays out. If not, we form a new continuation, which is ideal, because then we could move our stop to our new protected swing, or we can just leave it. Let's see if we go ahead and hit this TP. We do.
[05:15] So, just to review, this is a really great example of a positional entry. We have a candle 2 closure, we have a CISD, we have a valid fractal model. Within that valid fractal model on the lower
[05:27] timeframes, we have a protected swing in candle 2 prior to the open of candle 3. We can then look to enter at the open of candle 3, putting our stop on that new protected swing, as long as it also
[05:40] respects the EQ, and then look to trade that higher. But once again, if we do miss that initial entry, we can still use the inter-candle change in the stated delivery or new continuation set form to to get on the side. So here is another example of a positional entry. So you can see we have
[05:57] a candle to closure here, we have a change in the state of delivery, and what we notice in here we have protected things right here prior to the open of the new higher time frame candle If I confident in this bias that is where I looking to take positional entries and I can take an entry on the open of the new higher time frame
[06:15] candle, but where do I need to put my stop on a protected swing? Then I could look for 2R, and then go ahead and let this play out. Now if you notice, we could have gotten another secondary entry here, the inter-channel change in the phase delivery, but the reason for positional
[06:31] entries is if you don't know if it's going to form this wick or not right it could just expand lower obviously here we have this reaction off previous day low we could potentially anticipate a new continuation forming but let's see what happens here
[06:44] and you can see we form new protected swings a couple of them actually and then we get that expansion to 2r so the point of a positional entry is you aren't sure if we are going to
[06:57] following inter-candle change in the stated delivery to find this wick to get on side wicks. But instead, you have a protected swing that is over the EQ of the previous candle. So you consider this protected because if we were going to have a small wick for expansion, we should not reach
[07:12] this point. So then I can look to take this entry, put my stop on that protected swing, and let the day play out expecting it to expand lower. Let's get into another example. So here we We are in another example on AUDUSD on the 15 minute chart.
[07:27] You can see we have an ideal candle to closure with an SMT with NZDUSD and a PSP with NZDUSD and DXY. Going into this candle we are expecting it to move higher.
[07:39] Now do we have a protected swing? We do. Is that in respect to the EQ? Yes, we have a lot of room between this EQ where it should be respected and this low. So we wouldn't want to see price go all the way down to this low.
[07:52] we'd want to see it respect this area in the fair value gap and go higher. What could we do? We could take an entry on the open of that candle, put our stop on the protected swing, and then look for 2R. This 2R can still make sense because we are within this range here, but one thing we do
[08:06] want to consider with protected swings is if the risk-reward does not make sense, you either have to manipulate your entry or your stop loss in some way to give better risk-reward. So let's say, for instance, this didn't fit my requirements. I would then maybe look to position my entry on the
[08:21] air value gap here, and then I can get to our 8-bit clicker. And so those are decisions you have to make, but let's see how this positional entry would work out. And you can see we get a nice expansion higher there in this candle 3.
[08:35] And this is an example of why positional entries actually are a thing for me within my model. I noticed that many times in candle 3, if we already had a protected swing that has set up, price doesn't need to form another protected swing to expand.
[08:48] It can expand on the open of that new higher time frame candle, and I would miss trades like this. So this is the way I have developed to go ahead and enter trades like this, where I may have been missed in the past. Let's get into another example.
[09:00] So here we are in another example. We are on AUDUSD on the hourly and daily charts. You can see we have a nice candle 2 closure. It doesn't have the best closure. We prefer it over the high but it does have that V reversal And if we look on the lower time frames it really just expansion and then a consolidation Now this is a lesson on choosing the protected swings in
[09:21] relation to equilibrium. This is valid for a entry line because it is a candle to closure and we have a new protected swing. Now I want to ask you which one of these protected swings makes sense? Does it make sense to put my stop loss on this protected swing right here? No because it is not in respect
[09:38] to the equilibrium. If we are looking for this daily candle to perform its wick in this t-slot area, respecting the EQ, my stop loss just does not make sense there. I'd honestly expect it to get taken out. Now, does this stop loss down here make sense? Yes, because this protected swing is
[09:55] in respect to that EQ. Christ can respect the EQ and not take me out of this position. So let's see what happens. Can we get 2R out of this? And you can see as we let this continue forward, you can see we form a new protected swing, which means I could trail my stop loss,
[10:09] anticipating this to be the intraday low, or if I miss my initial entry, this could be a secondary entry. And do we expand higher? We do, and we hit R2R there. So, this is just a lesson in selecting
[10:21] protected swings. Mechanically, yes, this is a protected swing prior to the open of candle 3, but does it make sense in the context of what the structure looks like and where the equilibrium is located? No. And so that's why I would want to choose this one. Let's get into one final example.
[10:38] So here we are in our final example on silver on the daily and hourly. What do we have? Do we have a candle two closure? No. So what does my model look for? A candle three closure. Do we have a candle three closure? Yes. Do we have a change in the state of delivery? Yes. Now what am I looking
[10:55] for? What area do I want to see respective in here? I want to see the EQ respective, but also these protected swings. Here I have a protected swing, and here I have a protected swing. Now, would I want to put my stop loss all the way up this high? No. Would it make sense to put my stop
[11:10] loss at this level here? Let's see. Does this give me enough distance? It doesn't technically cover the EQ, but there's still a large enough area that I want to see a wick form in this area and not trade too high up. So, this is where I could look to take a positional entry, or look for a new
[11:27] continuation to form. So you can see we do get that expansion lower and we hit R2R. So this is where it makes sense to use a positional entry. I'm expecting this momentum or this expansion to
[11:39] continue and I'm not looking for a deep retracement. I have a new protected swing going into the open of the higher time frame candle. In this case it's candle 4 where I can position myself on there, give myself enough room for this rectus form and allow expansion to occur. Now I hope this video
[11:56] helped you. If you did find it confusing and you are new to my model, I would not worry about it. I would not focus on this concept. It is an advanced concept. But with that, if you did enjoy it, please give it a like, subscribe, and I'll see you guys in the next one. Have a good one.