Best Entry Points in Trading — How to Find High-Probability Smart Money Setups

[00:04] entry points and how to find a high-probability setup. Let's take a closer look at this first. What is a setup in our trading? Yes, this is, in essence, a certain market situation, yes, which

[00:20] meets the conditions for entering a transaction. In general, the transaction. In general, the mechanism itself, and the search for setups from the moment you sit down at the computer screen, yes, until the

[00:34] moment you enter a trade, can be divided into three most important stages, yes. The first thing we start with is searching for the setups themselves, right? So today we'll talk about

[00:48] what you need to find on the chart and how we select an asset. The second thing you need to do, yes, with the assets you've already selected, that is, after the first point, yes, that is, this is a kind of funnel, you create a

[01:05] this is a kind of funnel, you create a preliminary list of assets for the day or for the nearest medium term, yes, which you are interested in trading. The second stage will be a more detailed analysis of the context, yes, that is, of those

[01:21] found trading scenarios or setups, yes, in a different way. You will study them in more detail to determine whether they are suitable for determine whether they are suitable for you, whether they suit the current market

[01:35] situation, or whether it is better to remove this asset from the swatchlist, for example. And the second, that is, the result of your second action, this list

[01:47] is rotated a little, that is, you will have some left , and the number of assets, let's say, it will decrease and you will have some assets. You understand that, yes, this trading setup does take place, but most likely it will not happen

[02:01] today. It's better to focus on those assets that will provide a assets that will provide a trading situation for your trading today. Here. Or, in terms of context, it is better not to consider this trading setup at all.

[02:18] And the third stage, in essence, is already a decision-making stage , that is, when your asset, and your chosen trading setup, approaches the zone of interest from which you, for example, expect a reaction, yes,

[02:34] towards your intended goals. You will already be, that is, when the time comes, you will, uh, make a decision to enter this position or skip this

[02:46] trading setup. Yes, and look for some, uh, best-case scenarios, yes, or skip this trading day altogether. Let's start with the first point, yes, which we have already outlined. This is a search for the setups themselves. What do we need to

[03:02] do? Well, it's all banally simple, actually, because the first thing you actually, because the first thing you need to start with is finding need to start with is finding price magnets. So, price magnets are

[03:16] liquidity, right? a, which is confirmed by an increased amount of demand or increased amount of demand or supply. And this place will attract the price, and it is desirable that these targets

[03:30] are located according to the trend. Also, often your watchlist for observation and subsequent trading will include ranges, also known as sideways movements. Why?

[03:42] Because in sideways movements, liquidity is essentially concentrated on both sides, and while the price is held in a narrow range, most traders will, uh, open their positions within this range, and thus a large

[03:57] amount of liquidity will accumulate within and beyond the boundaries of this sideways movement. And if one of the sides deviates, it would be appropriate to expect the price to move towards its opposite border. Therefore, I repeat, sideways movements often end up on your

[04:14] often end up on your primary selection watchlist, and they are considered a high-probability setup. Also, at the first stage, after you stage, after you have found suitable assets for the targets, where

[04:27] liquidity is concentrated, or in other words, supply and demand, yes, where supply and demand, yes, where evaluate the premium discount. array, that is, to determine the areas for work and the

[04:42] current value of the asset, starting from the higher time frame to the lower one. And here is another important note, yes, the rule that you should always remember and adhere to. Price always moves from liquidity to liquidity and to

[04:58] price rebalancing. Price rebalancing is filling the February gaps. And only limit orders can hold back the price , thereby forming pois, yes, that is, our zones of interest, or in other words, order blocks, yes, that is, when the price cannot overcome

[05:15] a certain area, and there is no demand or supply, it thereby creates and removes liquidity, it forms order blocks. These are the support areas, that is, our zones of interest, from which we can potentially, and if we hold them,

[05:31] consider opening our positions. Let me just look at this example for now Let me just look at this example for now . Ah, we have an asset, and we see how it is . Ah, we have an asset, and we see how it is

[05:45] is, we have an upper lower boundary, we see, and already the formation of a deviation of the upper boundary, which will already be a potential zone of interest for us, from

[05:57] which we can expect a reaction. And I repeat, the markup that I did, we are interested in Premium Discount Market. We understand that if our targets Market. We understand that if our targets in this example are short, then

[06:11] we are interested in the area and those zones of interest, that is, those points that are located primarily in the premium market in order to anticipate the subsequent assessment. And therefore, as a result of this analysis, a

[06:26] preliminary scenario of the asset’s movement is born, yes, that is, without any additional context. There is not much that needs to be done at this stage. And before we continue, I suggest you subscribe to our free

[06:40] Telegram channel. Here you'll find Bitcoin and altcoin analytics, trade breakdowns from our instructors, educational articles on smart trading, lists of coins for day trading, recommendations on where to enter and exit trades, tips and

[06:56] life hacks you won't find on YouTube, and special offers just for you. And most importantly, all this is absolutely free. Subscribe to our channel and let's trade together. The link to our Telegram channel is now on the screen, and also

[07:12] in the description below this video. Setup evaluation. Now let's work with the assets you have selected. Here. ah, and let's talk about what needs to be

[07:25] done here, yes, in order not to open positions on everything in a row, you must, ah, now look at this situation from the outside, namely, establish the context, that is, is

[07:37] there a trend for this asset, right? If there is a trend, then it is preferable for your goals to be located according to the trend and to work according to this trend, of course, local or global trend. This means that you must always be aware

[07:54] that you are trading. You trade a position, for example, looking for completion, even in this schematic example, after the completion schematic example, after the completion of the correction, yes, you expect the

[08:07] of the correction, yes, you expect the trend movement to continue or you are working within a sideways trend or some other market conditions. That is, you have to conduct an analysis here, you have to identify the liquidity zones where

[08:21] large orders are concentrated. I mean liquidity, yes, which we have indicated. Find poi, that is, our zone of interest, and identify key support and resistance levels. Let me remind you that the areas of interest from which we can

[08:36] interest from which we can consider the reaction are most often, in consider the reaction are most often, in

[08:48] unlike the Order Block, if you understand it, sometimes, even in some rare cases, you can open a deal with a limit order, for example, in an order block. That

[09:00] is, for example, if we have an order block, yes, and we throw a limit order right into it , yes, this is an aggressive method, yes, it, ah, does not always work, its execution will directly depend on the context, that is,

[09:14] as you analyzed. And plus it will consume your nerves, because the position will open, then it is not a fact that it will turn around or not. This period of reversal formation is often not very pleasant, but one way or

[09:28] often not very pleasant, but one way or another, from the order block, you can open deals aggressively. The second type of area of ​​interest that we consider as a potential reaction is currency gaps. You should be interested in broad areas of

[09:43] You should be interested in broad areas of imbalances. untested, that is, they were not previously filled, the price did not fit there. Check these areas on higher timeframes. That is, let's say we saw aval on the hourly chart

[09:58] , check if it is on the four-hour or higher timeframes. Rate. Look, to summarize a little bit , yes, briefly, we have established the context of these trading situations. We

[10:14] understand that this trading setup has the potential to work out. After our initial analysis, it remains in our database. Next, we looked again at the liquidity zones where we have supply and

[10:29] liquidity zones where we have supply and demand, right? After this, we found those areas of interest, those points from which we would expect a reaction for the approach and delivery of the price to our pre- determined goals.

[10:43] And the next thing we need to do is, uh, define. That is, there are situations like this, and they happen quite often, in fact, that, uh, there are

[10:55] goals, there are, let's say, like in this example, yes, we have a breakblock here, in which, judging by this impulse, there will certainly be an imbalance, that is, impulse, there will certainly be an imbalance, that is, these are several zones of interest

[11:08] these are several zones of interest together. We have, and the targets are according to the trend, and schematic example, the trend is long. Everything is okay, we are watching here. And after this okay, we are watching here. And after this reaction, yes, we want to see, for example, an

[11:23] elephant there on a lower timeframe of currency formation. And here we will currency formation. And here we will open a deal from the newly formed open a deal from the newly formed order block. Here. But there are cases when

[11:37] we don’t get the ratio right. Let me remind you, the minimum is for you to stay Let me remind you, the minimum is for you to stay on track, it will be easier for you to maintain risk management, you are interested in positions that give at least

[11:49] one in three. The more you pull out, yes, there too, look at it without fanaticism , because in a short, for example, it is clear that you can reduce the stop and increase the PP there by five times, but then you will also pay five times

[12:03] more in commission. That's why it's not as obvious as it seems, but at least one in three. And determine the entry and exit, the exact levels for entering and exiting a transaction. That is, you must understand in advance where you will

[12:17] consider this position, yes, and where you will be fixed. It seems like a banal phrase, simple, understandable, but not everything is so simple, in fact, because there are such moments, and they happen quite often, that on the

[12:31] way to your goals there will still be problem areas. For example, here we have an order block that is still open, from have an order block that is still open, from which the price may receive a reaction. And

[12:45] at the moment you don’t know, eh, well, firstly, are there any limit orders to sell in this Order Block at all, or maybe it’s already liquidity and current

[12:57] market purchases will simply push the price higher, and the price won’t even notice it. Order block. There are such cases too. There are other cases where there are still other cases where there are still limit orders remaining in the order block, and current

[13:10] market purchases will not be able to execute these orders . And, accordingly, the price may react. And in the best case scenario, she will simply make a small correction and move on. For example, if your take profit, for example, was right here. And there are also

[13:25] cases when after the problem area you still have a bed of liquidity. I'll show you a live example now. This, by the way, was right on the Horde. Here. And it is appropriate to plan this transaction in advance and, well, fix some part of the

[13:43] position before the problem area or after achieving the first goals, especially if you already have 1 to 1 for this period of time. And then fix the remainder. There was exactly the same story with the Horde. When I

[14:00] opened a position on the order in this order block, I cut off part of the position here, because this is a large liquidity floor, and the price could have become saturated and gone, well, at the very least into a correction, yes, at the most, reverse

[14:16] correction, yes, at the most, reverse this local corrective trend, yes, well, this is not a trend, this is a correction forming. Here. And the second part, the rest of the position, was fixed on the main targets. This means that you

[14:30] where you will be fixed, and where you will exit. And the most important step, I finished it today with such a smile, is to wait for confirmation of the setup or the factor of

[14:42] to wait for confirmation of the setup or the factor of scenario cancellation, because traders are preparing for good scenario cancellation, because traders are preparing for good deals, ah, for good positions, ah . That is, it does n’t happen, or rather, it doesn’t, it does happen,

[14:55] you can do whatever you want, any kind of nonsense, but you have to nonsense, but you have to move away from it. And you have to wait for your trading setups, like, you know, like in fishing, you have

[15:07] to wait for them for a while until the price gets there. I'm not saying sit for weeks and wait, but picking them up within a day does n't mean you sit down, oh, great n't mean you sit down, oh, great target, and slam it down and open a position. It does

[15:20] n't work very systematically, not very, to put it mildly. Here. And this will not lead to the desired result in the long term. Therefore, wait for

[15:32] confirmation of this setup, wait for the price to approach this support the price to approach this support area or some cancellation factors, also keep in mind. I understand that, perhaps, at different stages of training this

[15:47] initially sounds like gibberish, but a little later, But one way or another, if you stay in this area, you will understand what the cancellation factors or

[16:02] confirmation factors of this setup will be. We 'll talk about this a little later . Entering a position. Look, you have, well, obviously, if you have grounds. Now we will talk about what reasons you may have for entering a

[16:18] position. There are, uh, not that many of them, but they are mandatory. You may have the formation of one of the reversal patterns, yes, let me remind you, this is a stop-loss, working with liquidity and breaking the

[16:32] structure, or a double bottom, that is, either such a formation with a breakdown of the stop-loss structure, yes, or a SWIP of liquidity, overhanging the structure. Here. Or an unwanted scenario in the form of an SMS, yes, when you have an

[16:49] unsuccessful piggy bank and the price has gone down. This most often indicates a corrective movement. That is why you need to know and remember reversal patterns and use them if they form in that area. That is, I

[17:05] want you to understand an important idea. By default, you have come to the conclusion after the second point that you already know where you will expect this setup. That's it, you wait. Now the price has approached this area. and what needs to happen for you to

[17:19] open a position there. And, accordingly, if this does not happen, then you simply do not have this position and this will be your cancellation factor, yes, if you did not see a sufficient number of reasons here, like a check, like a

[17:34] number of reasons here, like a check, like a checklist, yes, uh, using these points, then . There will be plenty more, even if it works, there is no need to rush into it . Reversal pattern. breakdown of the structure, yes, that is, there may be a

[17:49] local breakdown of the structure, maybe, on a lower timeframe, a breakdown of on a lower timeframe, a breakdown of the swing structure. Well, depending on the poi, there is usually no difference. Here. The structure's number often

[18:05] confirms the price's intention to react and reverse from the zone of interest you identified in advance, and to move toward the targets you outlined move toward the targets you outlined in the first point of your asset selection.

[18:19] Deviation of sideways movements, yes, if you are trading sideways, then this is your good reason to enter a position. Formation of an order block. What does it look like? That is, an order block can

[18:34] an order block can be formed, and in an imbalance, in an already formed Order Block, as was the case with the Horde, right? Here. That is, we have an order block formed within an already formed

[18:46] order block. Here. Therefore, this is also an additional good reason for opening a position, yes, and additional factors. That is, you need to understand that they, uh, do not replace each

[19:00] other, yes, but they are a plus to your mm scenario for working out your setup, yes, these are changes in the imbalances of value apps. That is, you understand that at

[19:12] the moment they were bearish, here we have bearish, here bearish, here bearish, here bearish imbalance, yes, that is, and we see that this is a corrective movement. And our area of ​​interest here was the hourly

[19:26] And our area of ​​interest here was the hourly currency, right? Here. And here you can see, here they are, that is, here and here, internal trend liquidity has accumulated. And our main goal was outlined here, right? Here. And you

[19:42] see how, after the reaction from your zone of interest, you experience a breakdown in structure, a change in fairways, you have a fairly good reaction, a large area of ​​bullish imbalance, yes, which indicates a change in strength and

[19:58] dominance, yes. If you have a long Aa setup, then, of course, you are long Aa setup, then, of course, you are also interested in a long FWP, yes, or a local breakdown of the structure. local, this means the boss or some

[20:12] shift of the structure. That is, it’s not when, uh, your extremes break down, yes, but directly the last swing that formed the internal structure. This is a

[20:24] less reliable scenario, but one way or another it takes place in the area of ​​interest. Yeah another it takes place in the area of ​​interest. Yeah .