2 Continuation Entry Models I Trade Using Orderflow — Transcript
Full transcript
- 0:00So, in this video, I'm going to show you
- 0:01two continuation entries that I actually
- 0:03trade, straight from my playbook. But,
- 0:05before I show you either one, I'll be
- 0:07honest with you. The entry model is the
- 0:09least important part of the trade. And
- 0:12if that sounds backwards, just stay with
- 0:14me and I'll come back to it at the end
- 0:15of the video. Now, a lot of guys ask me
- 0:17for the same thing, more chart examples.
- 0:19And I get it, a lot of my videos are
- 0:21kind of like this lecture-style
- 0:24presentation, and there's not a lot of
- 0:26practical examples on the chart. So,
- 0:28today, that's exactly what we're going
- 0:29to do. I do live stream every single
- 0:31day, and I show the entries, I show what
- 0:34I'm looking at, but I get it. Not
- 0:35everyone can join in the morning at the
- 0:38open. So, here's the video for it. So,
- 0:40two continuation entry models. One is
- 0:43built off of stacked imbalances, the
- 0:45other one is built from big trades. I'm
- 0:47going to talk about what each one is,
- 0:48the logic behind it, and then I'm going
- 0:51to show you what it looks like, and then
- 0:52we're going to go over a live chart
- 0:54example. So, both models come down to
- 0:57one word, acceptance. A footprint
- 0:59aggression shows up, a stacked
- 1:01imbalance, a big trade, but that alone
- 1:04is not the trade. What matters is
- 1:06whether price comes back into that area
- 1:09and accepts it instead of just rejecting
- 1:11it. So, these are usually two-candle
- 1:13entries. The first candle confirms the
- 1:15aggression, and the second candle is my
- 1:17execution. That's where I'm looking to
- 1:19get in on the pullback. The print itself
- 1:22is not the signal, the reaction to it
- 1:24is. All right, so now let's talk about a
- 1:27continuation entry. So, this will be our
- 1:29big trade playbook for the day,
- 1:30acceptance. Now, all this means is that
- 1:33we are printing a big trade, and we're
- 1:35actually pushing through, we're getting
- 1:37the price progression, and we're looking
- 1:38for us to pull back, we're looking for
- 1:40this level to hold, and for the candle
- 1:42to then flip back bullish, and that's
- 1:44where we enter long. Stop would then go
- 1:46right below where the big trade is. Now,
- 1:49typically this is done in higher
- 1:51momentum environments where we're really
- 1:54getting a stronger push. [music] And
- 1:55location actually matters a lot if
- 1:58you're taking a continuation entry like
- 1:59this. And sometimes it doesn't come on
- 2:01the next candle. Sometimes we may not
- 2:04have a wick going all the way down here.
- 2:07We may have another candle that pushes
- 2:08up, and we may wait for us to pull back
- 2:12into this area where we are watching,
- 2:14we're looking for the positioning to be
- 2:16defended to then continue the move
- 2:18higher. We are looking for
- 2:20follow-through after the big trade
- 2:21prints. The key, again, is not in the
- 2:24individual big trade itself. It's
- 2:26whether when price is coming back to
- 2:29revisit this area if we are going to
- 2:32defend this positioning. [music] So, the
- 2:33execution logic is pretty simple for
- 2:36this type of entry. After the big trade
- 2:38prints and we do see follow-through and
- 2:40this is in direction of whatever we
- 2:43believe the price is going to go, then
- 2:45we are having this candle open up and it
- 2:47needs to, again, immediately pull back
- 2:50into this area. We're looking for, in
- 2:52this case, sellers to stall, stall,
- 2:54stall. We're looking for absorption of
- 2:57sellers or a failure of sellers to
- 2:58actually push price lower. And then we
- 3:01are looking for that pressure or that
- 3:02re-engagement of initiative buying
- 3:05pressure to step back in, and the moment
- 3:07that we start flipping back bullish,
- 3:09well, I am going long. Stop is being
- 3:11placed right below the candle that has
- 3:14the big trade in it or right below the
- 3:16big trade itself. You should give it a
- 3:18little bit of room so you don't get
- 3:20wicked out if it comes back [music] to
- 3:21revisit it later. The entry is taken on
- 3:23the actual retest. We are waiting for
- 3:26the intent to be shown to have that
- 3:28follow-through for [music] the
- 3:29counterparty, or this case sellers, to
- 3:32step in, to fail, and for the
- 3:35re-engagement or for buyers to step back
- 3:38in and continue the move. The same would
- 3:40go for if we were using this for shorts.
- 3:43But again, with this type of entry,
- 3:45location is incredibly important.
- 3:47Understanding where you are in terms of
- 3:49the auction is incredibly important if
- 3:51you're going to be using an entry model
- 3:52like this. So, what exactly are we
- 3:54betting on in this case? The big trade
- 3:57represents real interest and we're
- 4:00looking for the market to agree and be
- 4:02willing to actually continue in the
- 4:04direction. Now, what we want to see is
- 4:06just because a big trade prints, okay,
- 4:09this is a common mistake for this. Just
- 4:11because a big trade prints, we are not
- 4:13necessarily just copy trading it going
- 4:16long, okay? And that's really important.
- 4:18We are looking for sellers to try and
- 4:20get back below this area and fail. And
- 4:24once that buying pressure steps back in,
- 4:27that is our confirmation to enter the
- 4:29trade for the continuation. It's also
- 4:31important to note when you're using this
- 4:33entry model, there's a difference
- 4:35between using a very large buy order and
- 4:38using like some tiny, let's say you have
- 4:40like some tiny filter on your big trade
- 4:43where, let's say you trade MNQ and
- 4:45you're looking for big trades with a
- 4:47minimum value of 100. Well, then that's
- 4:49potentially just noise. Don't use that.
- 4:51Just so you guys know, I'm typically
- 4:53looking for big trades on MN, if I'm
- 4:55using MNQ, I'm looking for big trades
- 4:57with a minimum value of at least
- 5:00300. At least. But again, size doesn't
- 5:03matter though if you're not actually
- 5:05getting that follow through or that
- 5:06acceptance after the big trade actually
- 5:08prints and we close above it. And a
- 5:10nuance to this or something to note
- 5:13[music]
- 5:13is I don't really want to see the big
- 5:16trade printing right at the top of the
- 5:18candle. And then I'm not looking for us
- 5:20to just do this tiny little retest and
- 5:22then go up. I want it to be deeper into
- 5:24the body of the candle because what it's
- 5:26representing to me at that point is that
- 5:28we actually had some decent follow
- 5:30through following the big trade. So, now
- 5:32that I've kind of explained this, if you
- 5:34guys watch me on stream, you probably
- 5:36see me take these types of continuation
- 5:38entries all the time. So, let's go take
- 5:40a look at an example. Now, let's take a
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- 6:42firms by using code match. Now, let's
- 6:44get back into the video. So, here we are
- 6:46on a 5-minute MNQ chart, and I'm going
- 6:50to show you a trade that I actually took
- 6:52today. This is actually a pretty good
- 6:54example. Um, I took a big trade
- 6:56continuation
- 6:58entry model while I was on stream today,
- 7:00and I'm going to go over how I read this
- 7:04situation and how I actually use this
- 7:06entry model. Now, something that we may
- 7:09note is that yes, we do see big trades
- 7:12sitting here. Okay, there's a big trade
- 7:14here. You could say, "Thrax, well, why
- 7:16didn't you, you know, take this
- 7:17continuation?" Or, "Why didn't you take
- 7:19this continuation?" It is important,
- 7:22like I mentioned earlier, where I do
- 7:23want to see the big trade actually
- 7:25having follow-through after it prints.
- 7:27So, what I'm trying to see is I'm trying
- 7:29to see follow-through following the big
- 7:31trade. I want to see it inside of the
- 7:33body of the candle. I need to see a
- 7:35strong close, and then when we actually
- 7:38come up to retest it, well, then I need
- 7:39to see it fail. So, this morning, we
- 7:42were actually chopping around a bit.
- 7:44Now, something to note about about chop
- 7:48is [music] you all often times see
- 7:50aggression or potentially big trades
- 7:54sitting at both ends. That doesn't mean
- 7:56that you should necessarily react to it
- 7:58because again, we got to use context. We
- 8:01got to use bias. We got to use location.
- 8:03I do I did want to see us go lower this
- 8:06day, but I'm waiting. We're currently
- 8:07chopping. I'm watching aggression push
- 8:09lower. It's failing. I'm watching
- 8:11aggression push higher. It's failing.
- 8:13I'm watching aggression push lower. It's
- 8:15failing. And now here we are again. So,
- 8:18I need to see true confirmation
- 8:20and I'm sitting here and I'm waiting. I
- 8:23want to see us go lower. If we do begin
- 8:25to break lower, then I'm looking for a
- 8:26continuation for us to potentially
- 8:28[music]
- 8:28follow that pressure or that momentum to
- 8:31the downside if that's what I was
- 8:32looking for for the day. Now, I'm going
- 8:33to speed this up a little bit and then
- 8:35I'm going to pause it.
- 8:36So, here we are. We're seeing our big
- 8:38trades. Now, what I'm looking for
- 8:41because this is still at the bottom of
- 8:42this range is I'm looking to see if
- 8:45we're actually going to get continuation
- 8:47and follow through or if this is going
- 8:49[music] to just be another failed
- 8:51attempt lower and if the chop is just
- 8:54going to continue at this point. So,
- 8:56just because these trades print doesn't
- 8:58mean you just automatically follow them.
- 9:00I want to see what's happening after the
- 9:02trades actually print. So, I'm going to
- 9:04sit here and I'm going to watch for this
- 9:07candle to actually close. I need this
- 9:09candle to close because I need to see
- 9:10where we're going to be in relation to
- 9:12where this positioning is.
- 9:14>> [music]
- 9:14>> Now, what I'll do is I'm going to wait.
- 9:17We're going to see how this candle
- 9:18closes and if it closes and it's a very
- 9:21strong close and it looks like we're
- 9:23actually breaking out to the downside,
- 9:25[music]
- 9:25then I'm going to mark this area out.
- 9:27So, I'm going to speed it up and we're
- 9:28going to stop it once the candle
- 9:30actually closes. And this is a 5-minute
- 9:32candle by the way. Okay.
- 9:34So, here we go. We are seeing selling
- 9:37pressure breaking down. The candle is
- 9:39closing in 5 seconds. 3 seconds, 2
- 9:41seconds, 1 second, candle closure. What
- 9:44is the difference here between this
- 9:49and these?
- 9:51Well, when this one printed, we actually
- 9:53had follow through and we are now
- 9:55breaking to the downside. Now, yes, we
- 9:57do see this 2,000
- 10:00micros that were executed at the bid at
- 10:05the bottom of this. But, like I said
- 10:06earlier, I'm more interested in the big
- 10:09trades that are actually sitting within
- 10:11the middle of the candle or that
- 10:13actually had follow through following
- 10:15it. So, at this point, what I want to
- 10:18see is I would like to see this candle
- 10:20immediately pull back towards the big
- 10:22trades. In the event that I see this
- 10:24candle pull back to where this
- 10:26initiative selling pressure stepped in
- 10:28and this aggressive pressure from the
- 10:30seller started to step in and actually
- 10:32break us out of this chop. Once I start
- 10:34to see sellers stepping back in, then
- 10:37I'm going to go short and I'm going to
- 10:40go for the continuation.
- 10:41>> [music]
- 10:42>> Now, at this point, this is the
- 10:43confirmation candle. This candle got us
- 10:4675% of the way there and what I'm
- 10:49thinking now is in terms of if this then
- 10:51that. And so, what is that in this
- 10:53scenario?
- 10:53>> [music]
- 10:53>> If we come up and we don't go all the
- 10:56way back up into the range and we come
- 10:58back into this area where there are
- 10:59large sellers positioned here and we
- 11:02actually respect that and we start to
- 11:04accept lower prices, [music] meaning
- 11:06that we watch buyers fail, selling
- 11:07pressure re-engages and we begin to drop
- 11:10lower, well, that is my entry model and
- 11:12I'm going to take a short. So, we're
- 11:14going to watch it in 1X speed and we're
- 11:16going to we're going to see how it
- 11:18actually plays out. So, so far, so good.
- 11:21We open up and we immediately begin to
- 11:23push back. Now, some people may try and
- 11:26enter on this one. We're stalling, we're
- 11:28stalling. If we start to flip bearish,
- 11:30maybe they'll enter. I'm more so
- 11:32interested [music] in these because this
- 11:35is the pressure that actually cause us
- 11:37to begin to break out. Now, if this just
- 11:39goes, okay, and I want to see us go
- 11:42lower. If this just starts to drop, I do
- 11:45not care. Okay?
- 11:47I'll just let it go. It's not It's not
- 11:49the entry model that I'm necessarily
- 11:51looking for. I'm looking for the
- 11:52retracement back into this area. [music]
- 11:56So, we we're going to wait. We're
- 11:58starting to see buyers lifting the
- 12:00offer. We're seeing imbalances pop up.
- 12:03They're pushing it back up. At this
- 12:05point, as we are approaching the big
- 12:07trades right there, I'm looking to see
- 12:10if there's going to be continuation. Are
- 12:12we actually going to be able to push
- 12:13back through this area? In [music] the
- 12:15event that we see sellers start stepping
- 12:17back in and we start flipping bearish,
- 12:20then that is my indication to go short.
- 12:23So, I'm watching. We're failing to go
- 12:25higher.
- 12:26At this point, I'm going short. Now,
- 12:28where am I going to put my stop loss?
- 12:30I'm putting my stop loss
- 12:33above the big trades, okay?
- 12:36And I'm targeting whatever I'm
- 12:37targeting. Let's just say for this
- 12:39example, I'm targeting uh
- 12:412R, okay? So, let's just go down here
- 12:44and let's just target our 2R. Now,
- 12:46obviously, I know what happens today
- 12:48because I actually took this trade,
- 12:51but the idea remains the same. So, entry
- 12:54here,
- 12:56stop up here,
- 12:58and we'll target a 2R down here. Okay?
- 13:02At this point, I'm looking for us to
- 13:04continue down lower. I'm just going to
- 13:06speed it up. So, here we go. We're
- 13:07pushing. I want to see the continuation
- 13:09lower. If we start really pushing back
- 13:12up, then I don't want to be in this
- 13:14trade anymore. The moment this candle
- 13:15starts to flip and take these lows, I'm
- 13:17trailing my stop to break even, but I'm
- 13:20going to wait until we actually take the
- 13:21lows of the previous 5-minute candle cuz
- 13:24it's how I typically manage my trade.
- 13:26So, now I drop stop here and I'm letting
- 13:28it run to full TP. In the event we start
- 13:31getting closer to full TP, I maybe might
- 13:33trail [music] it. And we go and hit full
- 13:35TP, okay? This is an example and this is
- 13:38an example of a trade I took today
- 13:39[music]
- 13:40and the idea remains the same. I'm
- 13:41looking for us to break down lower, but
- 13:43I'm waiting for confirmation first.
- 13:46We're currently moving back and forth in
- 13:47the range. Now, we began to see that
- 13:50aggressive selling pressure step
- 13:51through. We have large trades or big
- 13:54trades sitting here. We actually get the
- 13:55fall through and we get the close.
- 13:57That is our confirmation that we are
- 14:00more than likely going to go lower 75%
- 14:03of the way there. We need the entry
- 14:06candle or the execution candle, which is
- 14:08this candle, to push back up
- 14:11towards the big trades for buyers to not
- 14:14get that fall through and for sellers to
- 14:17re-engage and for us to actually begin
- 14:18to drop lower. The moment that we see
- 14:21that, we see that push up, we see that
- 14:23failure, we start pushing back down and
- 14:26we start flipping bearish,
- 14:28okay? Then at that point, the last 25%
- 14:32of my entry model has now just finished.
- 14:34That is my confirmation to take the
- 14:36continuation lower. And I take this
- 14:39style of continuation using big trades
- 14:42all the time. Now, of course, there are
- 14:45times it doesn't work out. You know, I'm
- 14:47not going to sit here and say every time
- 14:48you see see this it's going to work out,
- 14:51but it's one of the entry models that I
- 14:54take in my playbook. But, of course,
- 14:56this is one variation of it and it does
- 14:59require the rest of the framework. It
- 15:01requires context, it requires bias, and
- 15:03it requires location. We're not going to
- 15:05go into that right now. We're just going
- 15:07to be talking strictly on the actual
- 15:09entry models that I use. But, this is a
- 15:11perfect example and a real example of
- 15:15what I took today on stream and what
- 15:17helped me actually pass all my Apex
- 15:18accounts today. Before anything else, a
- 15:21disclaimer and it's a non-negotiable.
- 15:23Stacked imbalances are incredibly
- 15:26common, and that alone makes them
- 15:29dangerous. This model only applies when
- 15:32the imbalance is extreme, and it aligns
- 15:35with the rest of the context, the rest
- 15:37of the bias, and just the framework in
- 15:40general. If you're just going to look
- 15:42for every little stacked imbalance that
- 15:44pops up on the chart, and you're going
- 15:46to be entering based off of it, then
- 15:48you're just trading noise. So, if we're
- 15:49looking at a stacked imbalance on a
- 15:51bullish scenario, you're going to see on
- 15:53my charts bold numbers that light up
- 15:56when they hit the ask. And when those
- 15:57numbers light up and they stay there and
- 15:59the candle closes and they're stacked on
- 16:01top of each other, then it's going to
- 16:03print the indicator from ATAS or a TOS
- 16:07that shows stacked imbalances. And on my
- 16:09screen, it's going to show up as these
- 16:10bluish lines, okay? These blue lines.
- 16:12[music]
- 16:13So, what that is representing is it's
- 16:16showing sustained one-sided aggression
- 16:18across multiple price levels. So, the
- 16:21imbalance itself is not the trade, the
- 16:23reaction to it is. Here's the logic.
- 16:26After a strong stack forms, price
- 16:29[music] pulls back into where the
- 16:30stacked imbalances are, and that
- 16:32pullback, or the reaction coming out of
- 16:34that pullback, is my execution. I'm
- 16:37entering on the retest. I'm watching for
- 16:38sellers in this case, in a bullish
- 16:40scenario, to push down, fail to get
- 16:43lower, and for buyers to re-engage to
- 16:45flip it back to the upside, typically
- 16:47within a single 5-minute candle or
- 16:4915-minute candle, whatever I'm using for
- 16:51my entry. And [music] I'm expecting this
- 16:53aggression to resume or continue. In a
- 16:56strong continuation environment, price
- 16:59typically will not trade cleanly back
- 17:01through the imbalance and hold there. If
- 17:04you're looking at my candles on my
- 17:05chart, I'll typically have a volume
- 17:07profile for every individual candle, and
- 17:10these often sit inside thin or
- 17:13low-volume pockets within that candle's
- 17:15volume profile. So, the entry is the
- 17:17retest of the stacked imbalance area.
- 17:19The stop goes on the other side of the
- 17:21candle that created that stacked
- 17:22imbalance. And if the aggression is real
- 17:25and the environment hasn't changed, then
- 17:28the idea is that price should not accept
- 17:30back through this area for this specific
- 17:33trade idea. If it does and we push back
- 17:36through it, then I'm wrong and then I'm
- 17:38out. What I'm betting on is simple,
- 17:40sustained aggressive participation,
- 17:42acceptance of that imbalance, and
- 17:44continuation in the direction of the
- 17:46higher time frame [music] bias. The
- 17:48common mistakes here, because there's a
- 17:49ton of them if you're going to use this,
- 17:51is trading weak or partial stacks or
- 17:54ignoring location and session context
- 17:58and entering before the imbalance has
- 18:00even finished forming because this
- 18:01imbalance, while this candle is still
- 18:03forming, can literally go away at any
- 18:06time. So, you have to wait for the
- 18:07candle to actually close. And one more
- 18:10thing when it comes to this type [music]
- 18:12of entry, sometimes this second candle
- 18:15never comes back to test it and price
- 18:17just runs. And if that happens, I just
- 18:20let it go. I don't chase it, but if it's
- 18:23a strong level with real momentum behind
- 18:26it and price pulls back into that area,
- 18:29let's say later on,
- 18:31and we come back into this area, I'll be
- 18:34watching to see if the buyers who showed
- 18:37up here step back into actually defend
- 18:38it and push it back up. Keep in mind,
- 18:40[music] of course, just because these
- 18:42show up on the chart, they actually show
- 18:44up pretty often, it doesn't mean that
- 18:45I'm just automatically going to get into
- 18:46a trade and that's not the purpose of
- 18:48this video. These entry models are the
- 18:50last thing that come [music] after the
- 18:52market is already confirming what I've
- 18:54been reading or what I've been
- 18:55anticipating or watching for. It's the
- 18:57confirmation of that idea. And these
- 18:59entry models are just a mechanical way
- 19:02for me to get into the trade, to know
- 19:05what to look for beforehand, and then to
- 19:07actually know where to place my stop
- 19:09loss. All All so let's take a look at an
- 19:11example here where we're looking for the
- 19:14continuation model or the entry model
- 19:17using stacked imbalances. So, let's
- 19:19speed up the chart a little bit. We're
- 19:20on a 5-minute time frame. We're
- 19:23currently watching price just sweep the
- 19:24lows and we're pushing back up. Now, of
- 19:26course, you do need context. You need
- 19:28the rest of everything else in order to
- 19:30actually get into a trade or use the
- 19:32entry model, but let's say we've just
- 19:34made our decision and we do want to go
- 19:36long and we're trying to look on where
- 19:38I'm going to get long.
- 19:39Now, what do we see happen right here?
- 19:42We are having large displacement from
- 19:44buyers. We're seeing stacked imbalances
- 19:46show up. Now, we want to wait for this
- 19:48candle to close. We need a strong
- 19:49closure. We're seeing a lot of
- 19:51aggressive participation from the
- 19:53buyers. And so, in the event that we
- 19:55have a strong closure up here, then what
- 19:57I want to see is I would like to see
- 19:59this candle close, the next candle open
- 20:02up and immediately pull back towards the
- 20:05stacked imbalances if they remain there
- 20:07by the time this candle actually closes.
- 20:10And the moment that we have buying
- 20:11pressure start stepping back in or the
- 20:13candle flips bullish to continue, I'm
- 20:16going to enter into a long position. So,
- 20:18let's speed it up until the next candle
- 20:20opens [music] up. We want to see how
- 20:21this candle closes.
- 20:23Because price can trade back through
- 20:25these stacked imbalances and they can
- 20:26[music] disappear. So, you have to wait
- 20:28for the candle to close. The candle
- 20:29closes, okay? Now, what I'm looking at
- 20:32is I would like to see this candle
- 20:34immediately pull back towards this area
- 20:36where the stacked imbalances are. So,
- 20:38between here and here.
- 20:41If this candle pulls back into this
- 20:43area, I don't want to see it get past
- 20:45this. And if we start flipping back
- 20:47bullish, then I'm going to enter long.
- 20:49So, let's speed it up a little bit and
- 20:51let's wait to see what it does. So, we
- 20:53see sellers hitting into the bid.
- 20:57We're reapproaching. Sellers hitting
- 20:58into the bid again. Are they going to be
- 21:00successful or are they going to fail and
- 21:03we're going to start flipping back to
- 21:04the upside? So, I'd be sitting here
- 21:06watching the sellers stall right now and
- 21:08I'm waiting to see, okay, we're coming
- 21:10back up. The moment that this candle
- 21:11begins to flip bullish, then at that
- 21:14point I'm going to go long and I'm going
- 21:16to place my stop right below the stacked
- 21:17imbalance. Something to note about this
- 21:19stacked imbalance is we have high volume
- 21:21note in this candle, low volume, and
- 21:23then a little bit of volume here. So,
- 21:25these stacked imbalances are sitting
- 21:27within [music] this low volume area of
- 21:29the 5-minute candle. Now, we want to see
- 21:31if we're going to accept higher and
- 21:32continue this aggression. We're seeing
- 21:34sellers kind of attempt to push lower at
- 21:36first, but they're not actually getting
- 21:38anywhere and I'm waiting to see that
- 21:40buying pressure start stepping back in.
- 21:42At that point, I'm going long right
- 21:44here. Stop is going right below
- 21:48the stacked imbalances and you can
- 21:50target whatever you're targeting.
- 21:52Let's just, for the sake of this video,
- 21:55let's just make it a 2R, okay?
- 21:59Now, we want to see this momentum
- 22:01continue. We're looking for a
- 22:03continuation.
- 22:04We want to see buying aggression
- 22:06continue to the upside. So, the in the
- 22:08event that we actually get back below
- 22:10this stacked imbalance or we start
- 22:12really pushing back through it, then at
- 22:14that point I no longer want to be in the
- 22:15trade. The point is to keep the
- 22:17stop-loss relatively tight [music] in a
- 22:19scenario where we're placing it behind
- 22:22aggression because we're looking for
- 22:23price to continue past that aggression
- 22:26and actually get that continuation in
- 22:27the direction that we're trying to take
- 22:29this trade. So, I'm just going to speed
- 22:30it up. The moment that we start to see
- 22:33strong aggression again, I'm going to
- 22:35move the stop to break even.
- 22:37Because
- 22:39at that point, right, it happened too
- 22:41quickly, but at the point where this
- 22:43candle pushes up like this, typically
- 22:46what I do in momentum-style trades, at
- 22:48least when it's based off of stacked
- 22:50imbalances, [music]
- 22:50depending on location, depending on how
- 22:52close we are to a potential,
- 22:54quote-unquote, danger zone or somewhere
- 22:56where this continuation might catch a
- 22:58little bit of friction, if we start
- 23:00pushing up aggressively again, then at
- 23:02that point, I'm going to be moving my
- 23:05stop loss to break even because if this
- 23:07whole trade is based off of the idea of
- 23:09momentum or that continuation, and we
- 23:12see aggression and that aggression
- 23:13actually begins to fail, then the entire
- 23:17reason for us to stay in this trade is
- 23:19now kind of dying out. Now again, this
- 23:21is just an entry model and a way that I
- 23:24actually get into these trades, but it's
- 23:26not the entire trade idea itself. And
- 23:29that's really important to note. Now,
- 23:31one thing that I want to mention and one
- 23:34thing that I think is really important
- 23:36when it comes to these continuation
- 23:37style entries. Let's say that we are
- 23:40watching bullish. Let's just say it's a
- 23:42big trade or a stacked imbalances or
- 23:45whatever. The entry model requires this
- 23:47candle to open, pull back, stall, stall,
- 23:50stall, pressure flips back to the
- 23:51upside, candle then prints this way, and
- 23:54then you're entering into a trade, stop
- 23:56loss below, TP up here. I mean, that's
- 23:59kind of a terrible drawing, but you get
- 24:00the idea. I just want to stress the fact
- 24:03that open, immediate pull back, failure
- 24:05to go lower, flip back to the upside,
- 24:08that is the entry signal for me to go
- 24:10long. The rest of the whole trade idea
- 24:12has to align. These are incredibly
- 24:13simple, okay? Like a 5-year-old or
- 24:16someone who is just learning how to
- 24:18trade can can trade these entry models.
- 24:21[music] It is not a standalone thing.
- 24:23They do not give you a trade in itself,
- 24:25and that's so important to note. But
- 24:27people always ask me like, "Thrax, what
- 24:29what's your entry model? Or why did you
- 24:30get in right there?" Well, I already
- 24:32knew what I wanted to do. I was just
- 24:34looking for a way to get into the trade
- 24:37and a and somewhere to place my stop
- 24:39loss. And that's just the purpose of
- 24:41these two models. You may be watching
- 24:43this. It's not some secret sauce. It's
- 24:45not some, you know, secret, "Oh, this
- 24:49one setup changed my life." No, it's
- 24:51not. It's just the final layer on a
- 24:53mechanical way for for to enter into a
- 24:55position and enter into a trade idea
- 24:59that was built for my framework and the
- 25:02last thing that comes is just the
- 25:03confirmation from watching this like
- 25:06micro structure in between two [music]
- 25:08candles so that I can actually get into
- 25:10the trade. So, let me close the loop
- 25:12that I opened at the start. I told you
- 25:14that the entry model is the least
- 25:15important part of the trade and here's
- 25:17what I meant by that. Everything I just
- 25:18showed you, the stacked imbalance, the
- 25:20big trade, the pullback, the entry, the
- 25:23stop, none of it has an edge on its own.
- 25:26It's really important to note, by
- 25:27themselves, those entry models before
- 25:30specifically for those continuation
- 25:32entry models that I showed you are
- 25:34useless on their own. And they only work
- 25:37inside the rest of the framework, with
- 25:39the rest of the way that you're building
- 25:41context around trades. You have to know
- 25:43location, you have to know the
- 25:45environment that you're in, you have to
- 25:47have a bias, and you have to understand
- 25:49the actual context around the move
- 25:51itself. Because without that, then
- 25:54you're just reacting to the candles in
- 25:56isolation and you're probably not going
- 25:59to see a lot of success doing that, to
- 26:01be completely honest with you. The entry
- 26:02models are not there to tell me what the
- 26:05market is going to do. It's there to
- 26:06just confirm what I was already reading
- 26:09and already looking for and [music] it's
- 26:11giving me a mechanical way to enter into
- 26:14a position and a place to put my stop
- 26:15loss. That's the job, nothing more. So,
- 26:19the order of operations matter. Context
- 26:22first, location, environment, bias, and
- 26:25then the entry model comes last. And the
- 26:27entry model comes only after everything
- 26:29else lines up. So, if you want to see
- 26:31how I actually build that context or how
- 26:33I map out my trades before I'm looking
- 26:35for that entry model or an entry
- 26:36confirmation for [music] me to actually
- 26:38get into the trade. Well, I live stream
- 26:40every morning on YouTube and Discord.
- 26:42Feel free to join. I take all my trades
- 26:44live and I will catch you guys there.
- 26:46See you.
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