Original subtitles

What's up everyone? Welcome to another episode of Smart Raja

Concepts. Now, today we're going to talk about impulse

entries. Now, before we get into the impulse entries and

like you know, the candle confirmation and all that

stuff. Let me talk to you about how basically this whole idea

of impulse entries came in, right? So, now, in the

beginning, you know, we're basically told that you have to

wait for candles to close, you have to wait for candle

confirmations whether it's outside of a zone or when it's

creating a support, you have to wait for a candle to close.

Once the candle close is that's your confirmation then take a

buy or take a sell and prices most likely to go up or most

likely go down. We all know there are proabilities, right?

There's a probability, price is going to move up, there's a

probability, price is going to move down. Now, when we're

looking at these things, right? When we're waiting for candles

to close whether bullish or bearish. Sometimes, price

doesn't really give us that confirmation. Sometimes, you

know, prices continues rallying up or it continues dropping

down. That that happens a lot of times like you know and as a

new trade when we look at that we think oh okay maybe I'm

missing the move right here maybe like you know maybe my

strategy is wrong or maybe I haven't aligned myself properly

with the market because I was told to wait for the candle to

close and as I'm waiting for the candle to close price is

just moving where I wanted it to go man I've missed the trade

now that used to happen to me a lot you know and what I decided

to do at that point was I was like okay that's interesting

because I'm really at executing when candles are closing I'm

really good at executing especially with confidence as

candle is closing but what am I going to do when candle just

continues moving my way because someone's taking that trade

someone is in that trade profiting as price is moving

right whether that maybe a entry before price moved or

maybe that was an entry that someone was you know like okay

you know what I think price is going to go up and I'm just

going to take a buy price goes up and price goes in their

favor and they're like, okay, you know what? Yeah, I knew

price was going to go up but as traders, we need to execute

with confirmations, right? So, then I start to do was I was

like, okay, you know what? If price goes in my favor without

kind of closing, how could I have executed on this trade?

Now, sometimes, you know, we can use a buy stop or a sell

stop. Well, buy stop and sell stops basically mean is that

once your buy stop is executed, you're anticipating price to

continue moving bullish. Your sales job is executed you're

anticipating price to continue moving bearish now when impulse

increase came in so you have to look at where price is breaking

the highs or the lows you know because I decided that okay you

know what if I'm missing out a trade and price continues

moving where could I have an entry and I spent almost five

to six months just watching not trading just watching I spent

five to six months just watching to see how could I

have executed on that trade and then they were like almost

certain you know very few scenarios that made sense that

okay maybe this is what we can do you know so we're going to

talk about first we're going to talk about candles we're

going to talk about candles the way the candles are closing and

forming types of candles and then we're going to move into

the certain scenarios that have personally worked best for me

you know and a lot of you guys you've been through the market

fluidity we have three webinars on imposentry in market

fluidity imposentry, 1. 02. 0 and 3. 0 you guys know that

right but today we're going to talk about specific scenarios

that have a higher probability for price to continue where we

expected to go so we're going to talk about that now

first we need to talk about types of candles and how the

candles close some of you may already know this but we're

going to talk about the candles once again the whole thing how

candles close candles open, what the mean with wicks and

without wicks. So let's take a look at this right here

together. So here we have a bullish candle with no wick on

the top but it has a wick at the bottom. Next we have a

bullish candle with no wick at the bottom but it has a wick on

the top. Now what does this mean? Usually when you have a

bullish candle with no wick on the top this means that there

is no range for the next candle to go up. That's what that

means. But when you have a candle with no wick at the

bottom this means that the closed bullish but it had no

volume to go down. It had no opportunity to even create a

bearish wick. The volume was so much bullish that it couldn't

even go down. It just moved up and it created a wick on the

top, right? That's what this means. This right here, the

candle volume was bullish obviously. It went up but it

has no wick on the top which means there's no range for

price to continue moving up. That's what this now if we look

at this from a bearish perspective let's say now we

have a bearish candle now the things have turned right now

when we take a look at the first bearish candle the first

bearish candle means that there was no bullish volume there was

zero bullish volume the price couldn't even make a top wick

and price came down made a lower wick at this point next

one we have a bearish candle but no wick at the bottom this

also means that there lot of volume for price to go down but

it didn't make a range. If it didn't make a range to the

downside of a bearish candle, this means there's a fifty

fifty probability that price is going to continue pushing down,

right? Get it? We talked about the bearish candles and we

talked about the bullish candles, candles having no wick

on the top and candle having a wick on the top and the bottom

at the same time. So, now we're going to talk about the

scenario that I execute on and a lot of other successful

traders have executed on to make profound gains from the

market, right? So now, let's talk about that. For example,

we have a bullish candle that goes up. Let's say we have an

uptrend. We have another bullish candle that goes up. We

have an uptrend and then we have a bearish candle that

closes like this with the big wick at the bottom, right? This

normally means that price tried to go down but it couldn't

maintain its volume down and closed a small bearish candle.

This is what this means. Whenever we have a structure

like this, there's a very high probability provided there's

volume in the market that could be in your pre London, London

Open, Pre New York, you know, New York open, London closed,

whenever there's volume in the market, there's a very high

probability that price will break the high to continue

pushing up, right? Now, there are two scenarios in this

situation, right? The first scenario, we're going to talk

about the first one. The first scenario is that when the new

candle starts, right? And it starts to break the high of

this bearish candle. Once it starts to break the high right

here, there's a very high probability, it's going to

continue pushing up, right? Now, in this case, your stop

losses are going to be below the previous candle wick and

and I'm going to tell you why. The reason why your stop loss

is going to be below this previous candle is because this

candle didn't make a lower wick continue moving up it didn't

make a lower wick to continue to move up so whenever you're

taking an imposentry with the candle that hasn't made a lower

wick there is a higher probability it can continue

pushing back down right it has a higher probability it can

retrace and come down so this is risky at this point so when

we talk about okay what's the probability of this candle

continuing up versus you have a candle that made a lower wick

first before going up the candle that made a lower wick

first has a higher probability it's going to continue moving

to the top side but if you have a candle that did not make a

lower wick and start to go up that has a lower probability to

go up it can still go up but the probability of going up is

a little bit lower so when I take a look at a pattern like

this or when I take a look at you know if the candles are

closing in this way when you have a bearish candle I look at

the wick to the bottom as having let's say a 90% chance

that price is going to continue to push up but if I see that a

candle has no wick at the bottom and it starts to break

this high right here I see that as maybe like a 70% chance that

price is going to continue to push up you see what I'm saying

you know so whenever you have a candle with a lower wick first

as it starts to break the high I'm using my regular lot size

but if there's no lower wick, I'm using a smaller risk, a

smaller lot size because of the probability that is going to go

up, right? So, you're keeping in mind the probability, you're

keeping in mind the risk that okay, what's the probability

that's going to go up and if there's a high probability,

you're using your regular risk. If there's a lower probability,

you're using a lower risk at that point. Now, let's talk

about how are you anticipating the to form. Now, the basics of

trends is that price like you know let's say you have a

candle you know and trend is going bullish you have a next

candle trend is going bullish. So a normal trend is that a

candle is going to respect the low and it's going to break the

high. So it's going to make a higher high and it's going to

make a higher low. Right? Very simple. That's the basics of a

trend. So let's say if we are expecting price in this example

to continue to push up and let's say we have the perfect

scenario and trust me man these perfect scenarios they they

they always happen they do happen and people execute on

this now the perfect scenario is whenever you have a candle

forming even though this candle starts to go up it shouldn't

break the high of the previous candle if it doesn't break the

high of the previous candle and it starts to make a lower wick

respecting this low and once it starts to break the high of

this bearish candle then you can say okay you know what this

is a very high probability that price can continue to push up

because one number one trend is bullish right number two number

two reason is because the previous candle is an

exhaustion candle an exhaustion candle is when the wick is

bigger than the body it's an exhaustion candle and number

three is that when the handle, new one is breaking the high.

Once it's breaking the high, you're like, okay, you know

what? This is perfect. All what I'm going to do is I'm going to

take a cell impulse entry and my stops are going to be below

this current candle and then price going to continue pushing

up there's a 90% probability that this will continue to move

up I've executed on this a lot of time a lot of times every

time this happens I'm like okay you know what this is a higher

probability for price to move and let's execute on this now

second right second is basically the opposite let's

say you have a bearish candle coming down. You have another

bearish candle that comes down. So we're making lower lows and

lower highs and then all of a sudden you have a candle that

closes bullish like this now essentially we've created a

support in this scenario where a candle has closed bullish and

you're like okay you know what we've created a support and

maybe oh one thing I forgot to mention these scenarios they

perfectly work on the 30-minute to 15 minute time frames right

also they work on the one hour time frame they also work on

the four hour time frame but as you go higher up in time frame

what you going to realize is that the stop losses are

going to get bigger but the moves are also going to be

bigger right it's more prominent on the 30 -minute

I've executed a lot of times on the 30-minute very prominent

I've executed on the one hour time frames as well very very

prominent now let's say you have an situation like this

right you have a potential support form and let's say this

is a 30 minute time frame excuse the writing 30 minute

time frame and you have a candle closing like this now

normally when I look at this I'm thinking about that okay

you know what as long as the new candle respect this high at

this point and once it's breaks this low

okay now back to business right so now let's say if the new

candle it respects this high but once it starts to break

this low this is going to be the perfect confirmation for

price to continue pushing down right and this scenario is

going to be the same exact thing now what you want you

want the new candle to move up but to respect this high and as

it starts to break the low of the previous candle which is a

bullish candle this means the trend is being respected

because we're making a lower high and we an opportunity for

price to create a lower low, right? So, when it starts to

break the low, this goes in a sell mode and then price

continues to push down. This is the perfect opportunity for an

impulse entry in this scenario as well. Now, important thing,

when are we expecting this to happen? Normally, normally,

whenever you have a scenario like this of an impulse entry,

normally, with a higher probability, you're looking at

the half of the candle to break this low second half of the

candle sometimes the first half of the candle also works so

let's say if you're looking at if let's say this is a 30

-minute time frame maybe in the second 15 minute candle starts

to break this low right so now I want you guys to follow me

here right I want you guys to really follow me here and

really understand because let's say the next candle it starts

to make a top wick this means that maybe the first 15minute

candle of this 30-minute time frame starts to make the top

wick or maybe it closes bullish or maybe like you know starts

to go up but as long as this high respected and the second

15 minute candle