All language subtitles for 3) FXS Entry Types Reversal Model.eng(translated).eng(translated)

okay so now that we've gone through

continuation type entries we're going to

get into reversal model

and talk on how we enter

liquidity single confluences and

double confluences so let's get straight

into it

so reversal type entries put

simply is when price leaves an

unmitigated supplier demand zone

so in this example below we are going to

be looking at a supply zone

so what we will usually see with a

supply zone

is a downtrend in market where price is

putting in

lower lows and lower highs clear

downtrend

trading from supply zone to supply zone

and you know mitigations but what will

happen

is price will leave an unmitigated area

behind

so a supply zone which can be traded

at a later date in price

this is exactly what the diagram below

is showing

as you can see here so what we had was

price putting in lower lows lower high

lower low

lower high all the way down and

you know once we broke this low here

price pulled back mitigated that area

which is just a diagram but you get the

picture but if we look at this

area here when price put in a lower low

price came back up

to around you know 50 and then put in a

new lower low

so this area here can be classed as

you know our supply zone and an area

where price has not come in come into to

mitigate

and can be traded at a later date

okay so some important tips what makes

this class

what makes this class as a reversal

entry is

because of bullish structure which is

being created coming into

that supply zone okay so

if this area is going to get mitigated

then price is going to need to be

you know obviously pushing up which is

going to be breaking structure

as you can see so we put in a lower low

we then pushed up

broke the most recent lower low we then

come back down

mitigated that newly created demand zone

and then we put in we put in a new

higher high

breaking structure which you know

confirms that to be a high

high and confirms this as the new higher

low

so you can see we we're now putting in

bullish structure

or you could say order flow to the

upside which can be traded

into you know the unmitigated supply

zone

okay so another tip liquidity

can also play a huge part and give us

that edge

for the supply reversal to actually play

out in our

anticipated direction it always comes

back to the why

and where price is likely needing to go

to mitigate collect orders sweep

liquidity

before we get involved in the trade so

what we will usually see

as you can see from here we had a change

in

you know momentum but what you can see

is we have

liquidity so we have equal highs which a

lot of traders see this as a double top

but what we see this as is

you know one higher a second higher

price pushes off people are looking to

get

short from this double top and

especially once price is now pushing

down

people are getting fomo and they want to

get involved in in the cell

but what we know from looking at price a

little bit deeper

is a lot of money is going to be above

this area and

price is likely to sweep it tap into the

supply zone

and then you know sell off from here and

once this happens

we usually see a lot of momentum after

price comes into the level

the reason why is because price has a

reason to move

so price has you know essentially

taken fuel it's got money behind it and

now we can see

you know smart money get involved and

then you know trade with the large

institutions and banks

we also have liquidity that's built from

these lows as well

anyone looking who got in long from here

you know as they're seeing breaks a

structure

and you know this this is intent for

higher prices

because price failed to put in a new

lower low then we broke structure

okay but this is still liquidity from

people who are long in here which is you

know another reason

or another confluence for us to target

and essentially it gives

the reversal supply zone more

reason um to play out in our favor

okay now what we can do now is look at

the lower time frame entry types so

let's get into that now so

once price comes in takes liquidity

we want to be looking at entries now it

is the same thing as

our continuation entries where

we still want to be waiting for you know

lower time frame confirmation because

price does not

need to go short from here it's likely

but it's it's not 100 we need to trade

the lower time frames

and as i always say trade the momentum

and wait for con confluence and

confirmation

okay so that's how we do this as you can

see here

so this move coming up into the supply

is always going to be giving us higher

highs and higher lows

on you know a lower time frame down from

the hourly

whether that be the 15 five three minute

one minute

and whatever time frame you're executing

on

you know you're going to see higher

highs and higher lows coming in okay

so this is what we've got here higher

high higher low high

high high low we want to simply wait for

a breaker structure

as you can see and we want to wait for

the most recent higher low to be taken

out

now as you know i always wait for

you know clear momentum if this move

here break structure based

is seeking liquidity from say an

unmitigated

demand zone exactly the same thing as we

have here in reverse

if we don't get that momentum break and

it taps into

you know i'll just draw it out of you

and say it taps into

an unmitigated one minute time frame

demand zone takes liquidity from them

lows there

taps in then it could go along then i

would be looking to take that along

but that's the reason why i'm always

looking for this to break with momentum

and then you know look for my clear area

what caused the break

what candle calls the break is there a

range

is there a clear range we can take or is

it one candle

you know we look at price and then we

can make our decision based on that

okay so this would be a single boss so

this is the lower time frame

single boss which is broken structure

from higher time frame

supply zone which is this higher time

frame unmitigated supply zone

lower time frame break of structure

single boss which is a single confluence

single confluence from reversal area

if you want to see a tap into that area

then we can be looking

at this as our entry

and something like this and then we're

looking

to target we don't want to be targeting

you know the one minute

lows because that's just holding us back

we want to be targeting you know the

higher time frame liquidity and the

higher time frame sword

you know swing points and previous lows

okay that is how we get the most out of

the trade

because you need to think we've taken

liquidity from here

it's really you know there's a very high

probability that price is going to put

in a new lower low

because there's fuel behind the move

okay

so double confluence from reversal area

as i'm sure you can see same thing but

it's just

as it says it's a double rather than a

single okay

so it's the same thing higher highs and

higher lows coming into the level

and a single boss would be one break of

structure

as you can see we had a single break

here price came in to mitigate

then we broke structure again now one

question i'm

guessing you're probably thinking does

this single break need to mitigate

let me just move that out of the way

what if what if

it only came back to here

and is it still considered a double

break

from here so let's just say

price it came back into there

and we see it go short from there is

that valid

yes it's definitely valid i always say

to adapt

with the market and you know look at the

most freshest sort of breakthrough

structure

this this first break here does not need

to

it does not need to come back in to

mitigate

but if it does you know it's better

but it's not needed because

once you break once price can push back

up

and you know refill any imbalance or

even just pull back slightly

then break structure again i'm sure

you've seen it quite a few times

but when that happens we can just take

that most recent breaker structure

or what you can do is go and back test

it and see what works best for you

but for me i'm always taking the most

recent bracer structure

and looking to you know adapt with the

market and

and go from there really so now we've

gone through that

what i want to just do quickly is show

an

example on the actual live charts as you

can see here

i think this is a pretty good example

of you know the reversal model

okay so let's get into it so we're on

eur usd hourly time frame

as i was saying previously what we have

is a clear down trend

where we're breaking structure so i can

draw it on

so we had a break of structure here

so price broke the most recent higher

low we didn't come back into this last

up close candle

so this is left unmitigated which could

be used for a later date who knows but

rather than waiting for this we can

adapt this breaker structure here we had

a tap in

mitigation continuation break of

structure here

last up close candle you know most

recent

lower high mitigation and this was a

trade we took

which you know ended in like 30 or 25

percent

okay we have the next breaker structure

which is this candle which broke that

low

but then we pulled back and broke again

last up close refined stack handle

mitigation

so i'm sure you get the the idea now

what we can look at here

is that as the most recent lower low

as you can see we mitigated in

had a little bit of range all of these

breaks within here

is you know substructure substructure

breaks within the

the sort of the swing point which is

here lower low and really up here is the

lower higher

with a little pull back there but that's

really the swing point

okay and then this move is the move that

broke

and then put in the new lower low which

you know you can say

it's definitely got some momentum behind

it and

you know this is efficient pricing but

it's definitely an

area where we can look at as a supply

zone we have a clear range

and then initiation out now a key

point to

just cover quickly we do have a tap in

here

but as i've always said in recent videos

that

the 50 of an order block or supply zone

is what i look at

to class something as mitigated or not

now you can see price wicked in but it

didn't mitigate to the 50 percent

we can still trade this which we did

trade and we took some great percentage

but this area

is not voided and we can still trade it

at a later date

okay let me just bring that to the front

okay so although we took trades within

there we have

the we have opportunity i should say

to trade it again as price came in

as you can see so you can see price came

in perfectly to the

you know to the pip and then you know we

see large momentum down which then put

in a new lower low

okay so why why has this happened

well firstly we tapped him but we didn't

fully mitigate we put in a new lower low

and as i was saying that price will

break

bullish structure coming into the

unmitigated supply zone

okay so you can see that's exactly what

we have

you know a bit if this was nfp i believe

or news

um but what you can see is we broke

structure

so we broke the most recent um

lower high wicked it but you know we're

looking at just a structure overall

we then have the same thing here we

break again

so you know we're putting in high highs

and higher lows same thing

we break again high high high low

and we can trade these we can trade long

into this

into the supply zone which i was looking

at this

if i can remember but you know we just

fell short

we came in to

rebalance you know some inefficient

pricing but we didn't quite come into

this last down close

order block okay

now this is what i was saying about

bullish structure

being formed coming into these areas

okay and again we put in

another break of structure which is

going

on that

break a structure there we go and then

we tap into the supply zone

as you can see so yeah we can trade

these we have a breaker structure here

tap into that last down close candle or

this wick

which we can trade long and if i just

remove this for a second

what we can also see is although it's

not perfect

we have equal highs but as i've always

said

equal highs does not need to be perfect

you know this is still definitely

considered

um a liquidity point and where people

are looking to sell from

because if you look at this we have

a higher price push down come back up

sort of given a

sort of u shape double top area

retrace candle we get some sort of

rejection from that area

retail are looking to trade you know

they're looking to get involved

a lot of traders be sizing this up you

know 15 pip

even 20 pips stop loss because you know

there's no clarity

they need 20 pips and taken out

but we know this as a clear area where

price is

likely needing to go to collect orders

stop losses you name it and then we're

getting involved from here

now that is the exact reason why we see

price then

tap in mitigate and look at the

momentum which is bigger than all of

this move here

these these two candles okay because

it's fuel

the market has now got fuel and it can

move

to the downside we break structure

and then you know targeting

at a minimum the hourly low

and you can see we just go below it

and then we see a reaction let me break

again and

you know these are trades that we take

and

this is what we can you know we can get

in involved in

two three one one pip stop loss and then

we're looking at you know 30

30 just to the low okay

so it's all about understanding the wire

and where's liquidity

and where's price likely to go to