Positional Entries - Enter Before The Expansion

How's it going everyone and welcome back to another video. In this video we are going to talk about positional entries or positioning yourself for an expansion candle prior to the formation of its wick.

So let's get into the video. So what do we know about the fractal model?

We first need to wait for a higher time frame candle closure, and then we look for a lower time frame change in the state of delivery.

Now, we're going to pause for a second, go into this lower time frame, and notice we already have a change in the state of delivery.

Now, for my model, I'm not going to look to trade that until we form a continuation in this higher time frame candle closure.

What do we notice about this higher time frame candle closure? We have already formed a new protected swing right near the closure of this candle two.

So I can go into candle three with the anticipation that if we're going to have a small wick that supports expansion lower, we shouldn't take out this high.

So what does that mean? I could either one, wait for an inter

candle change in the state of delivery or a continuation to form this wick, or how many times have you taken a trade or missed a trade because it just expands right away.

So this is my expectation is it could retrace back up into this area or it could just expand lower.

but if I don't want to miss that move in the sake that it does just expand

right away at the open I can go ahead and take an entry right at the open or positioning myself for that candle three with my stop on a protected swing in candle two.

Now if you notice this stop on candle two is above the EQ of candle two. I want to see that above the EQ.

I want to see it in a spot where it should be protected but here's the anticipation. This is what a positional entry is.

I'm just entering at the open, positioning myself for that expansion under the anticipation that price shouldn't go take out this high if it is going to expand.

And there we get the expansion. Now let's say I don't take this positional entry. Are there other entries in here?

Sure, we have that intra candle change in the state of delivery and another continuation lower. But just to review, what is a positional entry?

A positional entry is when we have a protected swing going into the open of a new higher time frame candle.

This is where I don't want to miss the trade if candle 3 or that continuation candle is just going to expand right away.

So I will position myself or take an entry at the open, put my stop on that protected swing in candle 2 generally, and then allow the expansion to occur or the wick to form.

Let's get into trading view and go over a few examples of this. So here we are in our first example. And what do we have?

We have a candle 2 closure. Do we have a change in the state of delivery, we do right here. Now what do we notice?

Before the open of candle three here, we form a protected swing. Why is that?

We reach into this fair value gap, and then we close through the series of up-close candles that made that high.

So going into candle three here, we already have a protected swing that we'd want to see hold if price was going to form a small wick and then expand lower.

So we don't know. And ideally, we wouldn't want to see price continue to consolidate to form a wick in here.

So we could go ahead and look to take an entry right on the open of this new higher time frame candle or put our stop on that protected swing and then look for our two R.

Now, why are we trading away from this high? There is an SMT on the higher time frame. Let's see what happens here.

You can see we do form a new continuation, but you don't know if that is going to happen or if it's just going to expand away.

Let's see what happens. And there we go and hit our 2R.

So obviously price didn't just expand away, but many times you will lose opportunities if you're always waiting for that intracandle change in the state of delivery.

Let's get into another example. So here we are in another example. What do you notice we have?

We have a four-hour candle two closure. we want to check, do we have a change in the state of delivery? We do.

So you can see my model will print it out, mark it as a candle to closure. But what do we notice about this candle three?

We can look left here. What do we have? We have a new protected swing that has formed. We have went into this fair value gap.

We have closed over the series of downclosed candles into that fair value gap, forming a protected swing in this fair value gap.

So going into the open of this new higher time frame candle, we want to see this equilibrium respected as marked out with this T spot here.

If you notice, this protected swing is right below that T spot. That is ideal.

We have a protected swing that protects the area that we want to see respected. So what could we look for here?

So we could actually enter the open of this higher time frame candle, put our stop on that protected swing, and then look for our 2R or to these liquidity points marked out by the indicator.

So that could be our positional entry. We are entering at the open of candle 3, putting our stop on a protected

swing that also covers the area that we want to see respected or that EQ, and then we're going to see if this plays out.