Definition
"using limit entry techniques for long-term traders"
"you don't necessarily need the big turning points at the top or the bottoms you just need to meet in between and be a long-term trader still and it capitalizes on a lot of pips a lot of points if you do these types of trades"
"it takes a long time for them to come to fruition and long time for them to set up"
Prerequisites & Context
Higher Time Frame Alignment
"you have to blend the pd arrays on the daily chart as well so by blending these things together with the higher time frame monthly and weekly pulling price one side or the other bullish or bearish respective on those higher time frame charts"
Market Structure Requirement
"preferably this is going to be useful to you when the market's already shown the willingness to have a market structure break it's already started to move higher"
Buying With A Limit Order
Setup Conditions
"the monthly and or weekly should suggest institutional order flow will be seeking a pd array above daily market price"
"the daily should post a bearish candle"
"the daily chart must close the candle with a down close and it is not valid while the daily chart candle is trading and or forming"
Entry Placement
"the buy limit is going to be placed at the bearish candles close this is a daily candle"
What This Accomplishes
"the very next day or the next candle when it opens up we're expecting price movement to move below that down candles close"
"what we're actually doing is we're buying at a deeply undervalued price it's already going to be oversold without requiring any indicators but we're going to be buying at a deep deep discount when the market's predisposed to move higher"
"you're buying that real deep suppressed undervalued market and it's in a deep discount and it will look to seek to move to a premium"
Selling With Limit Orders
Setup Conditions
"the monthly and or weekly should suggest institutional order flow will be seeking pd arrays below daily market price"
"the daily should post a bullish candle and the daily chart must close the candle with a up close"
"it is not valid while the daily chart candle is trading and or forming"
Entry Placement
"the sell limit is going to be placed at the bullish candles close"
What This Accomplishes
"what we're doing is essentially we're selling short in an overvalued or overbought condition in a market that's predisposed to go lower based on monthly and or weekly pd arrays that will draw price lower"
"by selling short on a limit above that candles close what you're doing is essentially getting that last little piece of market movement above getting that last little surge"
PD Array Alignment Requirement
"you're not just selling on a limit on any up candle if we have an opinion about being bearish"
"these conditions are best suited when we align them with a daily pd array in other words if there's a bearish order block if there's a gap that it's traded into if it's filled in a void if it's traded above a recent high okay or it's retreat back into an old historical low support broken analysis resistance"
"you're not just indiscriminately going out and finding up candles and down candles... you're not just simply going in based on the candle itself by itself it's not a be all end-all and a system in and of itself"
"you have to blend the pd arrays on the daily chart as well so by blending these things together with the higher time frame monthly and weekly pulling price one side or the other bullish or bearish respective on those higher time frame charts"
For Bearish Setups
"on monthly and weekly if you're expecting lower prices or bearish pd arrays that should draw price down to a discount what you're expecting to see on the daily is up movement to go to a short term premium when that occurs then you have really really low risk high probability entry patterns at your disposal"
Market Psychology & Logic
Why Buy Limits Work (Bullish)
"what we're actually doing is we're buying at a deeply undervalued price it's already going to be oversold without requiring any indicators but we're going to be buying at a deep deep discount when the market's predisposed to move higher"
"you get quick immediate feedback even on a daily basis that you're on the right side of the marketplace and you start seeing profitability almost immediately"
Why Sell Limits Work (Bearish)
"we're getting this up movement against what longer term institutional order flows suggesting again on monthly and or weekly chart"
"many times when we look at day trades you're going to see that that's many times what you'll see is the judah swing it'll open make the high in london and then sell off and it'll be the beginning of a long long term move in that particular pair or asset"
Premium vs Discount Context
"the market's undervalued in already primarily bullish market condition"
"it's in a deep discount and it will look to seek to move to a premium"
Japanese Yen Example Analysis
Weekly Context
"you can see how price was moving away from that 100 level and there was a bearish order block up around that 118 119 level and that was the weekly premium pd array that would draw price up to that level long long term"
"we saw a bullish order block down in the discount level at 100 so you saw the willingness to want to bounce off that level"
Specific Entry Points & Results
"we saw a september rally away from a previous order block that was formed in august 2016 september we saw it retrade back down into it and using the down candle the very next day it did trade down below the close giving an amazing fill"
Result: "from that point all the way up to the weekly pd array or bearish order block it's 1800 pips"
"in november during the post election rally of donald trump's election in the u.s price stabbed one more time down into that weekly bullish order block"
Result: "from that point up to the weekly weekly pd array up at the weekly bearish order block was 980 pips"
"the next down close on this daily chart here again using the close of that down candle as a buy limit order entry point that next candle puts you in a position where it would have been 785 pip move"
"the next down candle again comes in with a 600 pip rally"
"another one comes in at 500 pips"
"the last one right before it gets to the weekly pd array given a 360 pip price move"
Key Observations
"each down candles close the next day it trades down below it you would be filled only limit going long and look at the responsiveness of price immediately after that there's one two three four five examples here on this daily time frame"
"that move from the 980 pip move it's essentially the equilibrium price bar just below it and even above the equilibrium price point there was many opportunities where you could have got several hundred pips"
Study & Review
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