Stop Entry Techniques for Long-Term Traders

Definition

"Stop entry techniques for long-term Traders" - using stop orders to enter positions based on higher timeframe institutional order flow.

"We're trading on the higher time frame monthly and weekly but we're executing on The Daily"

Buying with Stop Orders

Prerequisites

"Preferably you're going to be looking for setups to have the monthly and or weekly suggesting institutional order flow would be seeking a PD array above daily market price"

Daily Chart Requirements

Entry Placement

"You're going to be placing a buy stop for an entry on Long positions" at the bearish candle opening.

Concept Explanation

"The concept is is you're going to be using strength to get you long in the marketplace"

"Should price trade back up to that opening price and through it we should be turning the corner and should be training higher but if it doesn't trade back above the opening price you don't get a fill"

Successive Down Candles

"If you don't get a fill you just got to wait for another new down candle and you keep moving forward every time you get a new successive down candle you keep adding that new entry at the opening price"

"You would be consistently moving forward one new trading day every time a new candle paints and if you don't get a fill on The Daily you just go to the next daily candle once as long as there's another down candle you keep doing it"

Selling with Stop Orders

Prerequisites

"The monthly Andor weekly should suggest institutional order flow we be seeking a PD array below daily market price"

Daily Chart Requirements

Entry Placement

"The sell stop is placed at the bullish candles open"

Concept Explanation

"The premise behind this is we're going to be expecting weakness to take us into the marketplace"

"When we see the opening price on that up candle traded to many times you're going to see that it never turns back from that that low it just keeps on going and and that opening price becomes a very good trigger for short selling or a sell program"

Order Block Theory Connection

Buy Stop = Bullish Order Block

"Think about this for a second order block Theory this would be a bullish order block a down candle is a bullish orderer block if price trades away from a down candle and we trade back down into that opening of the down candle that's also what a future entry long position"

"We're using this buying of strength idea the the mechanics behind it is is that should price trade back up to that opening price and through it we should be turning the corner and should be training higher"

Sell Stop = Bearish Order Block

"This same premise here is the entry price technique that we use to go short at a bearish order block which is the up candle right before the down price move we're going to sell on a stop right at that opening price"

Return to Opening Price

"When price moves away from the opening price and comes right back down you are looking for confirmation you're going to see new buying and that may be another opportunity for you to add new positions"

Position Scaling & Re-Entry

Initial Position Management

"Once this buy entry has been executed and you're long if you get several hundred Pips in your favor you can take some of that position off with the expectation that you may end up seeing a retracement back to that same opening price"

Re-Entry at Same Opening Price

"If it does you can put that same position that you took off in partial profits right back on at that same opening price and it gives you opportunity to get basically the the average in same cost for that long"

"Then you hold it for the remaining portion of your trade and you can do this every single time there's a new down candle that you enter on a buy stop at the opening price it's the same concept that's going forward every single time until you reach that monthly and or weekly PD array in the form of a premium market"

Building Larger Positions

"You can actually put more position in in and you can build in larger positions if you start with a small amount allocated to the initial position you can build in another position in other words if you go with a half position or half of your traditional size you can go and add more back in but have already profited on portions that otherwise may not have been viewed as an opportunity"

Practical Rules & Guidelines

Long-Term Uptrend Rule

"While you're in a long-term uptrend every down candle promotes new buying opportunity for smart money so you'll be using this entry technique here to get in sync with those long-term trends"

PD Array Requirements

"Something on the monthly and weekly preferably both is leading you to believe that price will be drawn up there on that time frame"

Waiting for Counter Move

"The daily you're going to be actually waiting for the move to go against that intended Direction that's why we're buying off of a down candle"

Premium/Discount Awareness

"The higher we get on the monthly and weekly range and get closer to those premium ranges the less likely these candles are going to promote strong buying so just be careful about that"

"You want to be buying preferably at equilibrium or less than the range that you would identify on the monthly and weekly charts"

When to Stop Using Technique

"Once it gets overbought if you will on those monthly and weekly charts then as long as that's not there we continuously follow along with the marketplace on a daily chart every down candle promotes new buying opportunities for smart money"

Missed Opportunities

"You may miss moves you may not get a fill you may get uh filled and then eventually get stopped out"

Study & Review

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