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2 Continuation Entry Models I Trade Using Orderflow — Transcript

by Christopher Creamer | Orderflow Trader · 5,187 words · 748 segments · language en · Watch on YouTube

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  1. 0:00So, in this video, I'm going to show you
  2. 0:01two continuation entries that I actually
  3. 0:03trade, straight from my playbook. But,
  4. 0:05before I show you either one, I'll be
  5. 0:07honest with you. The entry model is the
  6. 0:09least important part of the trade. And
  7. 0:12if that sounds backwards, just stay with
  8. 0:14me and I'll come back to it at the end
  9. 0:15of the video. Now, a lot of guys ask me
  10. 0:17for the same thing, more chart examples.
  11. 0:19And I get it, a lot of my videos are
  12. 0:21kind of like this lecture-style
  13. 0:24presentation, and there's not a lot of
  14. 0:26practical examples on the chart. So,
  15. 0:28today, that's exactly what we're going
  16. 0:29to do. I do live stream every single
  17. 0:31day, and I show the entries, I show what
  18. 0:34I'm looking at, but I get it. Not
  19. 0:35everyone can join in the morning at the
  20. 0:38open. So, here's the video for it. So,
  21. 0:40two continuation entry models. One is
  22. 0:43built off of stacked imbalances, the
  23. 0:45other one is built from big trades. I'm
  24. 0:47going to talk about what each one is,
  25. 0:48the logic behind it, and then I'm going
  26. 0:51to show you what it looks like, and then
  27. 0:52we're going to go over a live chart
  28. 0:54example. So, both models come down to
  29. 0:57one word, acceptance. A footprint
  30. 0:59aggression shows up, a stacked
  31. 1:01imbalance, a big trade, but that alone
  32. 1:04is not the trade. What matters is
  33. 1:06whether price comes back into that area
  34. 1:09and accepts it instead of just rejecting
  35. 1:11it. So, these are usually two-candle
  36. 1:13entries. The first candle confirms the
  37. 1:15aggression, and the second candle is my
  38. 1:17execution. That's where I'm looking to
  39. 1:19get in on the pullback. The print itself
  40. 1:22is not the signal, the reaction to it
  41. 1:24is. All right, so now let's talk about a
  42. 1:27continuation entry. So, this will be our
  43. 1:29big trade playbook for the day,
  44. 1:30acceptance. Now, all this means is that
  45. 1:33we are printing a big trade, and we're
  46. 1:35actually pushing through, we're getting
  47. 1:37the price progression, and we're looking
  48. 1:38for us to pull back, we're looking for
  49. 1:40this level to hold, and for the candle
  50. 1:42to then flip back bullish, and that's
  51. 1:44where we enter long. Stop would then go
  52. 1:46right below where the big trade is. Now,
  53. 1:49typically this is done in higher
  54. 1:51momentum environments where we're really
  55. 1:54getting a stronger push. [music] And
  56. 1:55location actually matters a lot if
  57. 1:58you're taking a continuation entry like
  58. 1:59this. And sometimes it doesn't come on
  59. 2:01the next candle. Sometimes we may not
  60. 2:04have a wick going all the way down here.
  61. 2:07We may have another candle that pushes
  62. 2:08up, and we may wait for us to pull back
  63. 2:12into this area where we are watching,
  64. 2:14we're looking for the positioning to be
  65. 2:16defended to then continue the move
  66. 2:18higher. We are looking for
  67. 2:20follow-through after the big trade
  68. 2:21prints. The key, again, is not in the
  69. 2:24individual big trade itself. It's
  70. 2:26whether when price is coming back to
  71. 2:29revisit this area if we are going to
  72. 2:32defend this positioning. [music] So, the
  73. 2:33execution logic is pretty simple for
  74. 2:36this type of entry. After the big trade
  75. 2:38prints and we do see follow-through and
  76. 2:40this is in direction of whatever we
  77. 2:43believe the price is going to go, then
  78. 2:45we are having this candle open up and it
  79. 2:47needs to, again, immediately pull back
  80. 2:50into this area. We're looking for, in
  81. 2:52this case, sellers to stall, stall,
  82. 2:54stall. We're looking for absorption of
  83. 2:57sellers or a failure of sellers to
  84. 2:58actually push price lower. And then we
  85. 3:01are looking for that pressure or that
  86. 3:02re-engagement of initiative buying
  87. 3:05pressure to step back in, and the moment
  88. 3:07that we start flipping back bullish,
  89. 3:09well, I am going long. Stop is being
  90. 3:11placed right below the candle that has
  91. 3:14the big trade in it or right below the
  92. 3:16big trade itself. You should give it a
  93. 3:18little bit of room so you don't get
  94. 3:20wicked out if it comes back [music] to
  95. 3:21revisit it later. The entry is taken on
  96. 3:23the actual retest. We are waiting for
  97. 3:26the intent to be shown to have that
  98. 3:28follow-through for [music] the
  99. 3:29counterparty, or this case sellers, to
  100. 3:32step in, to fail, and for the
  101. 3:35re-engagement or for buyers to step back
  102. 3:38in and continue the move. The same would
  103. 3:40go for if we were using this for shorts.
  104. 3:43But again, with this type of entry,
  105. 3:45location is incredibly important.
  106. 3:47Understanding where you are in terms of
  107. 3:49the auction is incredibly important if
  108. 3:51you're going to be using an entry model
  109. 3:52like this. So, what exactly are we
  110. 3:54betting on in this case? The big trade
  111. 3:57represents real interest and we're
  112. 4:00looking for the market to agree and be
  113. 4:02willing to actually continue in the
  114. 4:04direction. Now, what we want to see is
  115. 4:06just because a big trade prints, okay,
  116. 4:09this is a common mistake for this. Just
  117. 4:11because a big trade prints, we are not
  118. 4:13necessarily just copy trading it going
  119. 4:16long, okay? And that's really important.
  120. 4:18We are looking for sellers to try and
  121. 4:20get back below this area and fail. And
  122. 4:24once that buying pressure steps back in,
  123. 4:27that is our confirmation to enter the
  124. 4:29trade for the continuation. It's also
  125. 4:31important to note when you're using this
  126. 4:33entry model, there's a difference
  127. 4:35between using a very large buy order and
  128. 4:38using like some tiny, let's say you have
  129. 4:40like some tiny filter on your big trade
  130. 4:43where, let's say you trade MNQ and
  131. 4:45you're looking for big trades with a
  132. 4:47minimum value of 100. Well, then that's
  133. 4:49potentially just noise. Don't use that.
  134. 4:51Just so you guys know, I'm typically
  135. 4:53looking for big trades on MN, if I'm
  136. 4:55using MNQ, I'm looking for big trades
  137. 4:57with a minimum value of at least
  138. 5:00300. At least. But again, size doesn't
  139. 5:03matter though if you're not actually
  140. 5:05getting that follow through or that
  141. 5:06acceptance after the big trade actually
  142. 5:08prints and we close above it. And a
  143. 5:10nuance to this or something to note
  144. 5:13[music]
  145. 5:13is I don't really want to see the big
  146. 5:16trade printing right at the top of the
  147. 5:18candle. And then I'm not looking for us
  148. 5:20to just do this tiny little retest and
  149. 5:22then go up. I want it to be deeper into
  150. 5:24the body of the candle because what it's
  151. 5:26representing to me at that point is that
  152. 5:28we actually had some decent follow
  153. 5:30through following the big trade. So, now
  154. 5:32that I've kind of explained this, if you
  155. 5:34guys watch me on stream, you probably
  156. 5:36see me take these types of continuation
  157. 5:38entries all the time. So, let's go take
  158. 5:40a look at an example. Now, let's take a
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  192. 6:44get back into the video. So, here we are
  193. 6:46on a 5-minute MNQ chart, and I'm going
  194. 6:50to show you a trade that I actually took
  195. 6:52today. This is actually a pretty good
  196. 6:54example. Um, I took a big trade
  197. 6:56continuation
  198. 6:58entry model while I was on stream today,
  199. 7:00and I'm going to go over how I read this
  200. 7:04situation and how I actually use this
  201. 7:06entry model. Now, something that we may
  202. 7:09note is that yes, we do see big trades
  203. 7:12sitting here. Okay, there's a big trade
  204. 7:14here. You could say, "Thrax, well, why
  205. 7:16didn't you, you know, take this
  206. 7:17continuation?" Or, "Why didn't you take
  207. 7:19this continuation?" It is important,
  208. 7:22like I mentioned earlier, where I do
  209. 7:23want to see the big trade actually
  210. 7:25having follow-through after it prints.
  211. 7:27So, what I'm trying to see is I'm trying
  212. 7:29to see follow-through following the big
  213. 7:31trade. I want to see it inside of the
  214. 7:33body of the candle. I need to see a
  215. 7:35strong close, and then when we actually
  216. 7:38come up to retest it, well, then I need
  217. 7:39to see it fail. So, this morning, we
  218. 7:42were actually chopping around a bit.
  219. 7:44Now, something to note about about chop
  220. 7:48is [music] you all often times see
  221. 7:50aggression or potentially big trades
  222. 7:54sitting at both ends. That doesn't mean
  223. 7:56that you should necessarily react to it
  224. 7:58because again, we got to use context. We
  225. 8:01got to use bias. We got to use location.
  226. 8:03I do I did want to see us go lower this
  227. 8:06day, but I'm waiting. We're currently
  228. 8:07chopping. I'm watching aggression push
  229. 8:09lower. It's failing. I'm watching
  230. 8:11aggression push higher. It's failing.
  231. 8:13I'm watching aggression push lower. It's
  232. 8:15failing. And now here we are again. So,
  233. 8:18I need to see true confirmation
  234. 8:20and I'm sitting here and I'm waiting. I
  235. 8:23want to see us go lower. If we do begin
  236. 8:25to break lower, then I'm looking for a
  237. 8:26continuation for us to potentially
  238. 8:28[music]
  239. 8:28follow that pressure or that momentum to
  240. 8:31the downside if that's what I was
  241. 8:32looking for for the day. Now, I'm going
  242. 8:33to speed this up a little bit and then
  243. 8:35I'm going to pause it.
  244. 8:36So, here we are. We're seeing our big
  245. 8:38trades. Now, what I'm looking for
  246. 8:41because this is still at the bottom of
  247. 8:42this range is I'm looking to see if
  248. 8:45we're actually going to get continuation
  249. 8:47and follow through or if this is going
  250. 8:49[music] to just be another failed
  251. 8:51attempt lower and if the chop is just
  252. 8:54going to continue at this point. So,
  253. 8:56just because these trades print doesn't
  254. 8:58mean you just automatically follow them.
  255. 9:00I want to see what's happening after the
  256. 9:02trades actually print. So, I'm going to
  257. 9:04sit here and I'm going to watch for this
  258. 9:07candle to actually close. I need this
  259. 9:09candle to close because I need to see
  260. 9:10where we're going to be in relation to
  261. 9:12where this positioning is.
  262. 9:14>> [music]
  263. 9:14>> Now, what I'll do is I'm going to wait.
  264. 9:17We're going to see how this candle
  265. 9:18closes and if it closes and it's a very
  266. 9:21strong close and it looks like we're
  267. 9:23actually breaking out to the downside,
  268. 9:25[music]
  269. 9:25then I'm going to mark this area out.
  270. 9:27So, I'm going to speed it up and we're
  271. 9:28going to stop it once the candle
  272. 9:30actually closes. And this is a 5-minute
  273. 9:32candle by the way. Okay.
  274. 9:34So, here we go. We are seeing selling
  275. 9:37pressure breaking down. The candle is
  276. 9:39closing in 5 seconds. 3 seconds, 2
  277. 9:41seconds, 1 second, candle closure. What
  278. 9:44is the difference here between this
  279. 9:49and these?
  280. 9:51Well, when this one printed, we actually
  281. 9:53had follow through and we are now
  282. 9:55breaking to the downside. Now, yes, we
  283. 9:57do see this 2,000
  284. 10:00micros that were executed at the bid at
  285. 10:05the bottom of this. But, like I said
  286. 10:06earlier, I'm more interested in the big
  287. 10:09trades that are actually sitting within
  288. 10:11the middle of the candle or that
  289. 10:13actually had follow through following
  290. 10:15it. So, at this point, what I want to
  291. 10:18see is I would like to see this candle
  292. 10:20immediately pull back towards the big
  293. 10:22trades. In the event that I see this
  294. 10:24candle pull back to where this
  295. 10:26initiative selling pressure stepped in
  296. 10:28and this aggressive pressure from the
  297. 10:30seller started to step in and actually
  298. 10:32break us out of this chop. Once I start
  299. 10:34to see sellers stepping back in, then
  300. 10:37I'm going to go short and I'm going to
  301. 10:40go for the continuation.
  302. 10:41>> [music]
  303. 10:42>> Now, at this point, this is the
  304. 10:43confirmation candle. This candle got us
  305. 10:4675% of the way there and what I'm
  306. 10:49thinking now is in terms of if this then
  307. 10:51that. And so, what is that in this
  308. 10:53scenario?
  309. 10:53>> [music]
  310. 10:53>> If we come up and we don't go all the
  311. 10:56way back up into the range and we come
  312. 10:58back into this area where there are
  313. 10:59large sellers positioned here and we
  314. 11:02actually respect that and we start to
  315. 11:04accept lower prices, [music] meaning
  316. 11:06that we watch buyers fail, selling
  317. 11:07pressure re-engages and we begin to drop
  318. 11:10lower, well, that is my entry model and
  319. 11:12I'm going to take a short. So, we're
  320. 11:14going to watch it in 1X speed and we're
  321. 11:16going to we're going to see how it
  322. 11:18actually plays out. So, so far, so good.
  323. 11:21We open up and we immediately begin to
  324. 11:23push back. Now, some people may try and
  325. 11:26enter on this one. We're stalling, we're
  326. 11:28stalling. If we start to flip bearish,
  327. 11:30maybe they'll enter. I'm more so
  328. 11:32interested [music] in these because this
  329. 11:35is the pressure that actually cause us
  330. 11:37to begin to break out. Now, if this just
  331. 11:39goes, okay, and I want to see us go
  332. 11:42lower. If this just starts to drop, I do
  333. 11:45not care. Okay?
  334. 11:47I'll just let it go. It's not It's not
  335. 11:49the entry model that I'm necessarily
  336. 11:51looking for. I'm looking for the
  337. 11:52retracement back into this area. [music]
  338. 11:56So, we we're going to wait. We're
  339. 11:58starting to see buyers lifting the
  340. 12:00offer. We're seeing imbalances pop up.
  341. 12:03They're pushing it back up. At this
  342. 12:05point, as we are approaching the big
  343. 12:07trades right there, I'm looking to see
  344. 12:10if there's going to be continuation. Are
  345. 12:12we actually going to be able to push
  346. 12:13back through this area? In [music] the
  347. 12:15event that we see sellers start stepping
  348. 12:17back in and we start flipping bearish,
  349. 12:20then that is my indication to go short.
  350. 12:23So, I'm watching. We're failing to go
  351. 12:25higher.
  352. 12:26At this point, I'm going short. Now,
  353. 12:28where am I going to put my stop loss?
  354. 12:30I'm putting my stop loss
  355. 12:33above the big trades, okay?
  356. 12:36And I'm targeting whatever I'm
  357. 12:37targeting. Let's just say for this
  358. 12:39example, I'm targeting uh
  359. 12:412R, okay? So, let's just go down here
  360. 12:44and let's just target our 2R. Now,
  361. 12:46obviously, I know what happens today
  362. 12:48because I actually took this trade,
  363. 12:51but the idea remains the same. So, entry
  364. 12:54here,
  365. 12:56stop up here,
  366. 12:58and we'll target a 2R down here. Okay?
  367. 13:02At this point, I'm looking for us to
  368. 13:04continue down lower. I'm just going to
  369. 13:06speed it up. So, here we go. We're
  370. 13:07pushing. I want to see the continuation
  371. 13:09lower. If we start really pushing back
  372. 13:12up, then I don't want to be in this
  373. 13:14trade anymore. The moment this candle
  374. 13:15starts to flip and take these lows, I'm
  375. 13:17trailing my stop to break even, but I'm
  376. 13:20going to wait until we actually take the
  377. 13:21lows of the previous 5-minute candle cuz
  378. 13:24it's how I typically manage my trade.
  379. 13:26So, now I drop stop here and I'm letting
  380. 13:28it run to full TP. In the event we start
  381. 13:31getting closer to full TP, I maybe might
  382. 13:33trail [music] it. And we go and hit full
  383. 13:35TP, okay? This is an example and this is
  384. 13:38an example of a trade I took today
  385. 13:39[music]
  386. 13:40and the idea remains the same. I'm
  387. 13:41looking for us to break down lower, but
  388. 13:43I'm waiting for confirmation first.
  389. 13:46We're currently moving back and forth in
  390. 13:47the range. Now, we began to see that
  391. 13:50aggressive selling pressure step
  392. 13:51through. We have large trades or big
  393. 13:54trades sitting here. We actually get the
  394. 13:55fall through and we get the close.
  395. 13:57That is our confirmation that we are
  396. 14:00more than likely going to go lower 75%
  397. 14:03of the way there. We need the entry
  398. 14:06candle or the execution candle, which is
  399. 14:08this candle, to push back up
  400. 14:11towards the big trades for buyers to not
  401. 14:14get that fall through and for sellers to
  402. 14:17re-engage and for us to actually begin
  403. 14:18to drop lower. The moment that we see
  404. 14:21that, we see that push up, we see that
  405. 14:23failure, we start pushing back down and
  406. 14:26we start flipping bearish,
  407. 14:28okay? Then at that point, the last 25%
  408. 14:32of my entry model has now just finished.
  409. 14:34That is my confirmation to take the
  410. 14:36continuation lower. And I take this
  411. 14:39style of continuation using big trades
  412. 14:42all the time. Now, of course, there are
  413. 14:45times it doesn't work out. You know, I'm
  414. 14:47not going to sit here and say every time
  415. 14:48you see see this it's going to work out,
  416. 14:51but it's one of the entry models that I
  417. 14:54take in my playbook. But, of course,
  418. 14:56this is one variation of it and it does
  419. 14:59require the rest of the framework. It
  420. 15:01requires context, it requires bias, and
  421. 15:03it requires location. We're not going to
  422. 15:05go into that right now. We're just going
  423. 15:07to be talking strictly on the actual
  424. 15:09entry models that I use. But, this is a
  425. 15:11perfect example and a real example of
  426. 15:15what I took today on stream and what
  427. 15:17helped me actually pass all my Apex
  428. 15:18accounts today. Before anything else, a
  429. 15:21disclaimer and it's a non-negotiable.
  430. 15:23Stacked imbalances are incredibly
  431. 15:26common, and that alone makes them
  432. 15:29dangerous. This model only applies when
  433. 15:32the imbalance is extreme, and it aligns
  434. 15:35with the rest of the context, the rest
  435. 15:37of the bias, and just the framework in
  436. 15:40general. If you're just going to look
  437. 15:42for every little stacked imbalance that
  438. 15:44pops up on the chart, and you're going
  439. 15:46to be entering based off of it, then
  440. 15:48you're just trading noise. So, if we're
  441. 15:49looking at a stacked imbalance on a
  442. 15:51bullish scenario, you're going to see on
  443. 15:53my charts bold numbers that light up
  444. 15:56when they hit the ask. And when those
  445. 15:57numbers light up and they stay there and
  446. 15:59the candle closes and they're stacked on
  447. 16:01top of each other, then it's going to
  448. 16:03print the indicator from ATAS or a TOS
  449. 16:07that shows stacked imbalances. And on my
  450. 16:09screen, it's going to show up as these
  451. 16:10bluish lines, okay? These blue lines.
  452. 16:12[music]
  453. 16:13So, what that is representing is it's
  454. 16:16showing sustained one-sided aggression
  455. 16:18across multiple price levels. So, the
  456. 16:21imbalance itself is not the trade, the
  457. 16:23reaction to it is. Here's the logic.
  458. 16:26After a strong stack forms, price
  459. 16:29[music] pulls back into where the
  460. 16:30stacked imbalances are, and that
  461. 16:32pullback, or the reaction coming out of
  462. 16:34that pullback, is my execution. I'm
  463. 16:37entering on the retest. I'm watching for
  464. 16:38sellers in this case, in a bullish
  465. 16:40scenario, to push down, fail to get
  466. 16:43lower, and for buyers to re-engage to
  467. 16:45flip it back to the upside, typically
  468. 16:47within a single 5-minute candle or
  469. 16:4915-minute candle, whatever I'm using for
  470. 16:51my entry. And [music] I'm expecting this
  471. 16:53aggression to resume or continue. In a
  472. 16:56strong continuation environment, price
  473. 16:59typically will not trade cleanly back
  474. 17:01through the imbalance and hold there. If
  475. 17:04you're looking at my candles on my
  476. 17:05chart, I'll typically have a volume
  477. 17:07profile for every individual candle, and
  478. 17:10these often sit inside thin or
  479. 17:13low-volume pockets within that candle's
  480. 17:15volume profile. So, the entry is the
  481. 17:17retest of the stacked imbalance area.
  482. 17:19The stop goes on the other side of the
  483. 17:21candle that created that stacked
  484. 17:22imbalance. And if the aggression is real
  485. 17:25and the environment hasn't changed, then
  486. 17:28the idea is that price should not accept
  487. 17:30back through this area for this specific
  488. 17:33trade idea. If it does and we push back
  489. 17:36through it, then I'm wrong and then I'm
  490. 17:38out. What I'm betting on is simple,
  491. 17:40sustained aggressive participation,
  492. 17:42acceptance of that imbalance, and
  493. 17:44continuation in the direction of the
  494. 17:46higher time frame [music] bias. The
  495. 17:48common mistakes here, because there's a
  496. 17:49ton of them if you're going to use this,
  497. 17:51is trading weak or partial stacks or
  498. 17:54ignoring location and session context
  499. 17:58and entering before the imbalance has
  500. 18:00even finished forming because this
  501. 18:01imbalance, while this candle is still
  502. 18:03forming, can literally go away at any
  503. 18:06time. So, you have to wait for the
  504. 18:07candle to actually close. And one more
  505. 18:10thing when it comes to this type [music]
  506. 18:12of entry, sometimes this second candle
  507. 18:15never comes back to test it and price
  508. 18:17just runs. And if that happens, I just
  509. 18:20let it go. I don't chase it, but if it's
  510. 18:23a strong level with real momentum behind
  511. 18:26it and price pulls back into that area,
  512. 18:29let's say later on,
  513. 18:31and we come back into this area, I'll be
  514. 18:34watching to see if the buyers who showed
  515. 18:37up here step back into actually defend
  516. 18:38it and push it back up. Keep in mind,
  517. 18:40[music] of course, just because these
  518. 18:42show up on the chart, they actually show
  519. 18:44up pretty often, it doesn't mean that
  520. 18:45I'm just automatically going to get into
  521. 18:46a trade and that's not the purpose of
  522. 18:48this video. These entry models are the
  523. 18:50last thing that come [music] after the
  524. 18:52market is already confirming what I've
  525. 18:54been reading or what I've been
  526. 18:55anticipating or watching for. It's the
  527. 18:57confirmation of that idea. And these
  528. 18:59entry models are just a mechanical way
  529. 19:02for me to get into the trade, to know
  530. 19:05what to look for beforehand, and then to
  531. 19:07actually know where to place my stop
  532. 19:09loss. All All so let's take a look at an
  533. 19:11example here where we're looking for the
  534. 19:14continuation model or the entry model
  535. 19:17using stacked imbalances. So, let's
  536. 19:19speed up the chart a little bit. We're
  537. 19:20on a 5-minute time frame. We're
  538. 19:23currently watching price just sweep the
  539. 19:24lows and we're pushing back up. Now, of
  540. 19:26course, you do need context. You need
  541. 19:28the rest of everything else in order to
  542. 19:30actually get into a trade or use the
  543. 19:32entry model, but let's say we've just
  544. 19:34made our decision and we do want to go
  545. 19:36long and we're trying to look on where
  546. 19:38I'm going to get long.
  547. 19:39Now, what do we see happen right here?
  548. 19:42We are having large displacement from
  549. 19:44buyers. We're seeing stacked imbalances
  550. 19:46show up. Now, we want to wait for this
  551. 19:48candle to close. We need a strong
  552. 19:49closure. We're seeing a lot of
  553. 19:51aggressive participation from the
  554. 19:53buyers. And so, in the event that we
  555. 19:55have a strong closure up here, then what
  556. 19:57I want to see is I would like to see
  557. 19:59this candle close, the next candle open
  558. 20:02up and immediately pull back towards the
  559. 20:05stacked imbalances if they remain there
  560. 20:07by the time this candle actually closes.
  561. 20:10And the moment that we have buying
  562. 20:11pressure start stepping back in or the
  563. 20:13candle flips bullish to continue, I'm
  564. 20:16going to enter into a long position. So,
  565. 20:18let's speed it up until the next candle
  566. 20:20opens [music] up. We want to see how
  567. 20:21this candle closes.
  568. 20:23Because price can trade back through
  569. 20:25these stacked imbalances and they can
  570. 20:26[music] disappear. So, you have to wait
  571. 20:28for the candle to close. The candle
  572. 20:29closes, okay? Now, what I'm looking at
  573. 20:32is I would like to see this candle
  574. 20:34immediately pull back towards this area
  575. 20:36where the stacked imbalances are. So,
  576. 20:38between here and here.
  577. 20:41If this candle pulls back into this
  578. 20:43area, I don't want to see it get past
  579. 20:45this. And if we start flipping back
  580. 20:47bullish, then I'm going to enter long.
  581. 20:49So, let's speed it up a little bit and
  582. 20:51let's wait to see what it does. So, we
  583. 20:53see sellers hitting into the bid.
  584. 20:57We're reapproaching. Sellers hitting
  585. 20:58into the bid again. Are they going to be
  586. 21:00successful or are they going to fail and
  587. 21:03we're going to start flipping back to
  588. 21:04the upside? So, I'd be sitting here
  589. 21:06watching the sellers stall right now and
  590. 21:08I'm waiting to see, okay, we're coming
  591. 21:10back up. The moment that this candle
  592. 21:11begins to flip bullish, then at that
  593. 21:14point I'm going to go long and I'm going
  594. 21:16to place my stop right below the stacked
  595. 21:17imbalance. Something to note about this
  596. 21:19stacked imbalance is we have high volume
  597. 21:21note in this candle, low volume, and
  598. 21:23then a little bit of volume here. So,
  599. 21:25these stacked imbalances are sitting
  600. 21:27within [music] this low volume area of
  601. 21:29the 5-minute candle. Now, we want to see
  602. 21:31if we're going to accept higher and
  603. 21:32continue this aggression. We're seeing
  604. 21:34sellers kind of attempt to push lower at
  605. 21:36first, but they're not actually getting
  606. 21:38anywhere and I'm waiting to see that
  607. 21:40buying pressure start stepping back in.
  608. 21:42At that point, I'm going long right
  609. 21:44here. Stop is going right below
  610. 21:48the stacked imbalances and you can
  611. 21:50target whatever you're targeting.
  612. 21:52Let's just, for the sake of this video,
  613. 21:55let's just make it a 2R, okay?
  614. 21:59Now, we want to see this momentum
  615. 22:01continue. We're looking for a
  616. 22:03continuation.
  617. 22:04We want to see buying aggression
  618. 22:06continue to the upside. So, the in the
  619. 22:08event that we actually get back below
  620. 22:10this stacked imbalance or we start
  621. 22:12really pushing back through it, then at
  622. 22:14that point I no longer want to be in the
  623. 22:15trade. The point is to keep the
  624. 22:17stop-loss relatively tight [music] in a
  625. 22:19scenario where we're placing it behind
  626. 22:22aggression because we're looking for
  627. 22:23price to continue past that aggression
  628. 22:26and actually get that continuation in
  629. 22:27the direction that we're trying to take
  630. 22:29this trade. So, I'm just going to speed
  631. 22:30it up. The moment that we start to see
  632. 22:33strong aggression again, I'm going to
  633. 22:35move the stop to break even.
  634. 22:37Because
  635. 22:39at that point, right, it happened too
  636. 22:41quickly, but at the point where this
  637. 22:43candle pushes up like this, typically
  638. 22:46what I do in momentum-style trades, at
  639. 22:48least when it's based off of stacked
  640. 22:50imbalances, [music]
  641. 22:50depending on location, depending on how
  642. 22:52close we are to a potential,
  643. 22:54quote-unquote, danger zone or somewhere
  644. 22:56where this continuation might catch a
  645. 22:58little bit of friction, if we start
  646. 23:00pushing up aggressively again, then at
  647. 23:02that point, I'm going to be moving my
  648. 23:05stop loss to break even because if this
  649. 23:07whole trade is based off of the idea of
  650. 23:09momentum or that continuation, and we
  651. 23:12see aggression and that aggression
  652. 23:13actually begins to fail, then the entire
  653. 23:17reason for us to stay in this trade is
  654. 23:19now kind of dying out. Now again, this
  655. 23:21is just an entry model and a way that I
  656. 23:24actually get into these trades, but it's
  657. 23:26not the entire trade idea itself. And
  658. 23:29that's really important to note. Now,
  659. 23:31one thing that I want to mention and one
  660. 23:34thing that I think is really important
  661. 23:36when it comes to these continuation
  662. 23:37style entries. Let's say that we are
  663. 23:40watching bullish. Let's just say it's a
  664. 23:42big trade or a stacked imbalances or
  665. 23:45whatever. The entry model requires this
  666. 23:47candle to open, pull back, stall, stall,
  667. 23:50stall, pressure flips back to the
  668. 23:51upside, candle then prints this way, and
  669. 23:54then you're entering into a trade, stop
  670. 23:56loss below, TP up here. I mean, that's
  671. 23:59kind of a terrible drawing, but you get
  672. 24:00the idea. I just want to stress the fact
  673. 24:03that open, immediate pull back, failure
  674. 24:05to go lower, flip back to the upside,
  675. 24:08that is the entry signal for me to go
  676. 24:10long. The rest of the whole trade idea
  677. 24:12has to align. These are incredibly
  678. 24:13simple, okay? Like a 5-year-old or
  679. 24:16someone who is just learning how to
  680. 24:18trade can can trade these entry models.
  681. 24:21[music] It is not a standalone thing.
  682. 24:23They do not give you a trade in itself,
  683. 24:25and that's so important to note. But
  684. 24:27people always ask me like, "Thrax, what
  685. 24:29what's your entry model? Or why did you
  686. 24:30get in right there?" Well, I already
  687. 24:32knew what I wanted to do. I was just
  688. 24:34looking for a way to get into the trade
  689. 24:37and a and somewhere to place my stop
  690. 24:39loss. And that's just the purpose of
  691. 24:41these two models. You may be watching
  692. 24:43this. It's not some secret sauce. It's
  693. 24:45not some, you know, secret, "Oh, this
  694. 24:49one setup changed my life." No, it's
  695. 24:51not. It's just the final layer on a
  696. 24:53mechanical way for for to enter into a
  697. 24:55position and enter into a trade idea
  698. 24:59that was built for my framework and the
  699. 25:02last thing that comes is just the
  700. 25:03confirmation from watching this like
  701. 25:06micro structure in between two [music]
  702. 25:08candles so that I can actually get into
  703. 25:10the trade. So, let me close the loop
  704. 25:12that I opened at the start. I told you
  705. 25:14that the entry model is the least
  706. 25:15important part of the trade and here's
  707. 25:17what I meant by that. Everything I just
  708. 25:18showed you, the stacked imbalance, the
  709. 25:20big trade, the pullback, the entry, the
  710. 25:23stop, none of it has an edge on its own.
  711. 25:26It's really important to note, by
  712. 25:27themselves, those entry models before
  713. 25:30specifically for those continuation
  714. 25:32entry models that I showed you are
  715. 25:34useless on their own. And they only work
  716. 25:37inside the rest of the framework, with
  717. 25:39the rest of the way that you're building
  718. 25:41context around trades. You have to know
  719. 25:43location, you have to know the
  720. 25:45environment that you're in, you have to
  721. 25:47have a bias, and you have to understand
  722. 25:49the actual context around the move
  723. 25:51itself. Because without that, then
  724. 25:54you're just reacting to the candles in
  725. 25:56isolation and you're probably not going
  726. 25:59to see a lot of success doing that, to
  727. 26:01be completely honest with you. The entry
  728. 26:02models are not there to tell me what the
  729. 26:05market is going to do. It's there to
  730. 26:06just confirm what I was already reading
  731. 26:09and already looking for and [music] it's
  732. 26:11giving me a mechanical way to enter into
  733. 26:14a position and a place to put my stop
  734. 26:15loss. That's the job, nothing more. So,
  735. 26:19the order of operations matter. Context
  736. 26:22first, location, environment, bias, and
  737. 26:25then the entry model comes last. And the
  738. 26:27entry model comes only after everything
  739. 26:29else lines up. So, if you want to see
  740. 26:31how I actually build that context or how
  741. 26:33I map out my trades before I'm looking
  742. 26:35for that entry model or an entry
  743. 26:36confirmation for [music] me to actually
  744. 26:38get into the trade. Well, I live stream
  745. 26:40every morning on YouTube and Discord.
  746. 26:42Feel free to join. I take all my trades
  747. 26:44live and I will catch you guys there.
  748. 26:46See you.

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