I was struggling to understand two-legged pullbacks even after reading and watching Mack (not to say he's not great, he is!). I appreciate how your video helps me have a better understanding. Thank you!!
I’ve studied Al Brooks’ price action method but I did not completely understand the concept of secondary entry. This video just made it clear. Thank you.
Please, could you put it in very simple words? I watched the whole video but I still don't get it. I see they're counting but it's never made clear where they're buying & selling. I'm having the same problem with the first one of Al Brook's books. Still not getting this whole framework. Maybe I just need more time with it. Thank you, in any case
It's the best explanation I've seen. I've practiced the second entries for one year and all you need is to practice the key points as you explained in this video
Another great video TW. Most (all?) price action setups take advantage of trapped traders, plain and simple. Second entries, two-legged pullbacks, and first breaks of trendlines ALL sucker bad traders into the wrong side - when they're wrong and all have to exit simultaneously is what makes these setups high-probability for us. Yes, it's psychology but I disagree with the explanations that are out there. Think about a downtrend... Price makes a new low, bounces, then turns back down - this is the first entry short. Low probability for us. But if this first move lower doesn't take out the prior low before bouncing again, forming a higher low, dumb longs jump in thinking they're catching a reversal. So when this second bounce fails and turns back down - forming the SECOND entry short - now all the new trapped longs' sell stops get triggered, adding selling pressure and fueling the downmove. All we're doing is entering in the direction of their pain. The same thing happens when a bounce higher takes out the upper downtrend channel line for the first time in a downtrend - dumb longs pile in thinking they're catching a reversal. But we know that a new low extreme is likely and look for shorts, not longs. Why? Because when all the longs are wrong and exit at the same time, their sell exit orders fuel the selloff down to a new low extreme. Same idea with a two-legged pullback to the EMA from below - bulls had TWO tries to take price higher but couldn't even move it above the EMA, so when the upmove stalls again they all hit sell market - driving price back down. So the trapped longs are what make the second-entry short, two-legged pullback to the EMA (in a downtrend), and the first break of the downtrend high-probability, not the sellers trying harder this time after they go back & study some more. Gotta realize the market is ruthless, in order to make money somebody's gotta lose it. What we're doing as price action traders is identifying where the most traders are ABOUT to be wrong so we can anticipate & profit from their exit orders moving the market in our direction - and transferring the money from their accounts to ours. It's war, act accordingly.
Exactly. And unfortunately market is design to trap us into these bad trades. This is why so many traders fail and give up too early before understanding what is really going on.
@@ThomasWade I’m One of these new traders. After seeing these explanations I’m like wow that’s me. I have trouble with always been on the wrong side and then timing all off then the move does go the way I thought from the beginning. I just realize I’m getting in too early and not knowing when to stay in. 🤦♂️ I’m still trying to understand these rules (2 leg pull back , trend line break rule) i kinda feel I understand because I notice just recently the breaks do get followed by extremes wow very interesting. I need more explanation don’t fully have it yet tho. Would be nice if you pulled up some common stocks apple Tesla QQQ and show in different time frames. I’m trying to look at the 1hr, 15 mins to see if I spot this concept playing out consistently
@@chrisbruce5533 Can you trade 1-5 minutes? I would recommend these. You can also learn the best on smaller timeframes. On higher timeframes you may wait very long time for a setup.
This is the best explanation i have seen in years, thank you. I was very confused today seeing breaks of channels + new lows , but bigger channels still holding.
My first try at MFF was unsuccessful, however, I am starting a free trial because I was in profits. I am going to implement the two legs knowledge on my swing strategy, I will give you the updates.
Can someone explain why he didn't short the 2nd entry short at 4:27? The candle I'm talking about is the candle that formed at 14.34. The signal bar he called was better but that seems to be in hindsight as I would've shorted the bearish candle at 14.34 with a stop above the previous green candle.
Hi. Im using this concepts for a while and got the better results ive ever had in my life. So, thank you. Still i still dont get why that candle 4:27 at 14:34 in particular isnt a valid setup. It closed below the previous bullish bar. The next one is oviously better but how could we know not to trade the 14:34 bearish? This things doesnt let sleep at night. Thank you again. Its because a green candle can be bearish? So the green hammer candle before the real entry is valid?
This is the kind of content I've been looking for. Learned a lot from your previous videos, especially in your 5 price action trading rules video. Thanks!
Hi, Why was the trade not possible at 12:45 . I can see a two legged pullback there also. Why do we need second leg to break higher for confirmation. Earlier in the video you did not wait for such confirmation. Can you please clarify?
@@ThomasWade Sorry, My mistake .English is not my first language so I watched the video again and again and got clarification.But this process created more new doubts 😊.I am using the chart time line. 1. At 15:34 did you take the sell trade? 2. At 16:07 does doji count as the middle leg? 3. In a two legend pullback/ pulldown do all candles of the first and third leg need to be green or red respectively? Thanks
15:34 Thomas is explaining how the candles form here it's a failed 2nd entry long.. He would not take the trade because it did not touch the ema. And the signal bar is a doji. Signal bar need to be bearish also
What I am not understanding is could you have taken a second entry short before taking the failed second entry long at 11:03? That's what's screwing with me. There is a second entry short there too correct?
Important is to watch the trend. Draw trend line with minimum 3 touches. Usually if the prices touches 21 ema/ trend line then that's a key entry point / candle.. Make sure the signal bar ( the bar before the main bar making the 2nd entry ) also need to be bullish incase of long.. You will need to watch more videos on this to fully understand the concept. Hope this helps..
Awesome video Thomas. We cannot find a better and more clear explanation than this one. Thank you very much for sharing. Have a wonderful weekend and please keep posting.
I’ve studied al brooks book but I was not able to find two legs and second entry…. But sir you really made it simple to understand, now I just have to do backtesting… thank you so much sir.. Really appreciated!!
If you are in a down trend and there is a breakout up, will you still use the counting as if it is a down trend not an up trend, as in looking for only 1st and 2nd entry shorts? Do you only count in the direction of the overall trend or will you transition between the 2? Maybe there is a time when the transition happens? You seem to be using the high point when looking to sell? I am getting mixed up I think. If it is a downtrend, you count from the low point, no? You seem to be counting from the high point. In a downtrend if you were looking for a reversal would you start to count from the high point? I assume you wouldn't do this though because it is an overall downtrend.
In downtrend you count from lows to count for second entries short. You can also count from the high of the correction to cound for 2EL to fail. To sell failed second entry long setup. But your main focus is to count from lows for first and second entry short.
hi ive been watching ur videos bubt its a bibt of a learning curve.. do u have an order from where i can start to become more advanced? as well as what time frame do u use in the videos i cant seem to find it
I trade 2000 tick chart. I would recommend checking beginner playlist first. I would start with the video about 5 price action rules, then how to count entries as well. I would also recommend checking video about money management.
Thanks for your lucid account of the two-legged pullback - you are indeed generous with your knowledge and expertise. As a neophyte, I have a question which no doubt reflects the overwhelmed novice's attempt to piece everything together. You refer to the smaller steep channel that constitutes the downtrend in question, and I can surmise that a minimum of two legs down in the small channel would be needed if we want to label the movement a trend, albeit perhaps a micro one, since it is enclosed within the larger channel you've also drawn. Not certain whether there are four or five legs to it, but after two legs down, why would none of the pullbacks (which look to have been ample point--wise) in this descent not be viable for executing a short? And how many legs do we need in order to qualify as a downtrend such as this, i.e., the descent before we reach the 4178 region for the legitimate two-legged pullback? I expect that I'll slap my forehead and wonder why your response failed to strike me as obvious. Do keep up the great work.
Hey Daryl, could you please shoot me an email with screenshot of the setup you are talking about? My email is thomaswadetrading@gmail.com Don't mean to be rude or antyhing, it is just much easier for us to understand this with screenshots.
Just great. Thanks. Video with a detailed explanation. The video helped a lot. Such videos are very useful for understanding the logic and meaning of price movement.
hey Thomas, you may have noticed I have been watching your videos and it's been really helpful. I have watched almost all of the videos, but I have a doubt. In other videos, you said not to take short entries when the candle is above the moving average, But in this video, you have taken such trades in the trading range, would you please explain why? For exp: video at 6:45. Thank you!
In trading ranges we buy low and sell high so naturally we will take setups on the opposite side of the EMA, that is completely fine. Also when the setups comes from main trendline, it can be taken from the opposite side of the EMA. Apart from that you for the most part want to wait for confirmation with EMA and wait for push below. But in trading we can trade on the opposite side of EMA.
@@ThomasWade I appreciate it, Thomas. Thank you. One request, please make a video on today's price action. I really want to know your side of the story, especially at the open.
Best explanation about looking into MM during downtrend day. Made note's of it. Hopefully next time I will use this strategy to scalp. Thanks for the great explanation.
Thanks for your great video! One question, 4:33 mentioned the red arrow entry point, that's actually not 2ES, what entry point do you call this? If the 2ES signal bar is not ideal, can we always wait for another qualified signal bar to enter short position?
This video was about showing the two legged pullback and how market moves. Correct this is just visual 2nd entry, not technical. But I didn't want to confuse anyone or make the video really long.
Daily is nice chart to use this but high probability setups take time to develop. So you may wait a long time for a good setup. This is why I recommend 1-5 minute. You can still use the price action rules because it is universal.
Thanks. Another vid explaining would be nice. I think I got it I’m new trader but would be nice to have another one explanation. I’m very interested in ur concept I am trying to look at charts to see if I see this but I’m not sure. Next video u do can you go to multiple charts (apple , Tesla , qqq ) and time frames. Thanks.
Thomas, two thumbs up, way up, for your first rate two legged move analysis. As philosopher Ralph Waldo Emerson observed, "..deep simplicity is the supreme elegance." The truth shall set us all free on the market plane as well as higher spiritual target levels. Dom Perignon cheers. New US subscriber.
Hi Thomas , in 13:25 of the video and 16min37 of the chart isn't a good signal bar for a short ? (second red candles after the higher high double top) . If not why ?
Correct the signal bar is not so good. It has a bullish stim at the bottom and closed above EMA. We are shorting so bar should close below EMA and be bearish.
@@ThomasWade I mean it looks for me like a good bearish signal bar and a second legged pull back just after we break the trend ( so we suppose to create a new extreme) , should i have take it in real life ? Sorry my english isn't perfect :)
@@zenoo514 You are correct, context is good there for short. But I wouldn't consider it a good signal bar. With better signal bar you could have taken that trade for sure.
Enjoyed the video and found it helpful. One question, at 13:30 where you say "first entry long, triggered above this bullish bar". Why didn't you count the 3rd bar from the top as the first entry long? I know the bar before it is a spinning top but it is green and the bar to it's right did break that high.
Because the way I count, double tops and bottoms reset the count. So you are technically correct but I reset the count and start over from the double top. Other traders may differ on this, this is how I prefer to count.
Thomas….At 4:31 of the video, you said “this is the first bearish bar” under the red arrow. What was wrong with the large red bar to the left of that (3 bars to the left of it)? Wouldn’t that have been the first bearish bar? Thanks for your help.
Great question, it would be good had there been a trigger. But notice there was no break below the low of that bearish bar. So we cannot enter there because there was no trigger just yet. The bar I marked was the first bearish bar where prices broke below.
@@ThomasWade Yeah thanks- right at 14:03 to be exact. I am confused. I see two small legs that look like it could be starting to reverse up. After it made what appears to look like a higher high to me, you said it was a second entry short. After it made a higher high there, I guess I would have thought to start reset counting for a long or short entry at that point possibly. I guess I am not fully clear what constitutes a higher high/higher low.
@@2nice79 I am not sure I fully understand. From the most recent lowest low I counted 2ES which is correct. There is a two legged pullback. Now, you can reset the count at the high of the correction and count for longs. Longs to fail - F2EL. Let me know if it is clear.
@@ThomasWadeok, maybe I need to pay more attention in spots in your videos where you are looking for failures. Maybe I am confused because I am not able to clearly define why you are looking for a failure vs looking for a long in this spot. Do you have a good video as a reference point that you can think of that gets deeper into failure situations?
@@2nice79 I am looking for short setups because the downtrend still needs new low. Here are the videos about failed second entries. th-cam.com/video/gXRXmxEcRx4/w-d-xo.html&ab_channel=ThomasWade th-cam.com/video/s2ivxFOJl0U/w-d-xo.html&ab_channel=ThomasWade
Hello, Here are some tutorial videos th-cam.com/video/TegF3yYjnng/w-d-xo.html&ab_channel=ThomasWade th-cam.com/video/GrRbOItgLgc/w-d-xo.html&ab_channel=ThomasWade
4m-38s. There were 3 bear bars.The first bar is just a breakout. Why didn't we take into account the second big bearish bar? We entered the sale at the third bar. Although the 2 bar is big strong. have we entered the third entry? Maybe there was a completed movement on two micro legs as an entrance ? I would like to understand the entry points.Settings. more detailed information with an explanation. With the legs clear thank you the video is excellent. Brother, thank you. You explain it well. I began to understand better
There was technically a second entry below that bullish bar (1st bar at the EMA) But we want to sell so we need to wait fo bearish red signal bar. The reason why we entered where I marked the arrow is because that is the FIRST BEARISH bar where prices ticked below.
Are 2nd entry moves more prominent on tick charts? Beacause 1 min charts show that majority facilitate only 1st entries and 2nd entries gravitate towrds sideways movement
Price action is universal. How many days have you watched on min chart? It is normal for some days to not offer that many setups but you need to backtest lot of days.
Price action reflects human behavior and it works on all markets. However cryptos are fairly new and they are influenced by different factors. When I took a look at btc chart I definitely saw the same things apply but since I haven't been trading BTC for a long time I have no real evidence for it. I would recommend making a quick look and backtest.
@@Mike-xt9fm Yes, they have a great customer service and fees are resonable ( I am not sponsored by them ). But these are decent brokers and they have good trading platforms. AMP has even platforms for free, they are not that great to use but it is enough for beginners.
Anyone can successfully earn consistent passive income from forex and stocks investments, all you need is a good mindset, the right information, and a very good investment management strategy. Over time I realized when I hired an investment manager, that's when I started to have stable income from my investments.
I’ve always wanted a financial manager to guide me with my forex and stocks investments, but my problem has always been where I’ll search for one. Do you have suggestions?
@@ThomasWade well I’ve traded the NQ a few times at the same time as the ES just to make a little more, but when my entry order is filled, about half the time I would get slippage to the point that it throws my risk:reward off, so I eventually stopped trading NQ all together. (I use stop orders not limit orders to enter so this could be a factor)
I was a bit confused by the two legs but now it's clear in summary the correction phase should have two legs, the second coupled by trendline or other support is the optimal entry, right?
Should the 2nd bullish leg break above the 1st bullish leg (like in your video), as sometimes there is a 2nd bullish leg that kind of is inside the range of the 1st bullish leg, and sometimes the 2nd attempt to sell happens within here , but then price can simply just keep going higher sometimes. I've seen on many charts trying to use this method, it can simply turn into one big uptrend (that we don't see in realtime as its just unfolding), how do we try to avoid that perhaps?
The second leg can be smaller than the first leg. You need to follow other price action rules. The two legged pullback is just part of the price action trading.
Thank you so much Thomas Wade. Your channel is the best I came across to understand Price Action. When you get some time can you please share a video that delves deeper into First entry long, second entry long, First entry short, Second entry short… the very basics of these moves… thanks you again
Hello, I have couple of videos about it. th-cam.com/video/GrRbOItgLgc/w-d-xo.html&ab_channel=ThomasWade th-cam.com/video/NNzCegosXu8/w-d-xo.html&ab_channel=ThomasWade
There’s a lot of guys who can do price action, but can’t teach it in a way learners can grasp quickly, you have a great way of teaching, cheers!
bro is the only real price action trader in youtube
I was struggling to understand two-legged pullbacks even after reading and watching Mack (not to say he's not great, he is!). I appreciate how your video helps me have a better understanding. Thank you!!
Thomas is my best Friend. I'm addicted to this channel✌
I’ve studied Al Brooks’ price action method but I did not completely understand the concept of secondary entry. This video just made it clear. Thank you.
Please, could you put it in very simple words? I watched the whole video but I still don't get it. I see they're counting but it's never made clear where they're buying & selling. I'm having the same problem with the first one of Al Brook's books. Still not getting this whole framework. Maybe I just need more time with it. Thank you, in any case
It's the best explanation I've seen. I've practiced the second entries for one year and all you need is to practice the key points as you explained in this video
One of the best explanations i have ever seen.
𝙩𝙚𝙭𝙩 𝙢𝙮 𝙣𝙪𝙢𝙗𝙚𝙧 𝙤𝙣 𝙒•𝙃•𝘼•𝙏•𝘼•𝙋•𝙋..
±❶ ❼•❸•❼ ❺•❸•⓿ ❻•❼•❷•❾'
Yes, his explanations actually make sense.
Another great video TW. Most (all?) price action setups take advantage of trapped traders, plain and simple. Second entries, two-legged pullbacks, and first breaks of trendlines ALL sucker bad traders into the wrong side - when they're wrong and all have to exit simultaneously is what makes these setups high-probability for us. Yes, it's psychology but I disagree with the explanations that are out there. Think about a downtrend... Price makes a new low, bounces, then turns back down - this is the first entry short. Low probability for us. But if this first move lower doesn't take out the prior low before bouncing again, forming a higher low, dumb longs jump in thinking they're catching a reversal. So when this second bounce fails and turns back down - forming the SECOND entry short - now all the new trapped longs' sell stops get triggered, adding selling pressure and fueling the downmove. All we're doing is entering in the direction of their pain. The same thing happens when a bounce higher takes out the upper downtrend channel line for the first time in a downtrend - dumb longs pile in thinking they're catching a reversal. But we know that a new low extreme is likely and look for shorts, not longs. Why? Because when all the longs are wrong and exit at the same time, their sell exit orders fuel the selloff down to a new low extreme. Same idea with a two-legged pullback to the EMA from below - bulls had TWO tries to take price higher but couldn't even move it above the EMA, so when the upmove stalls again they all hit sell market - driving price back down. So the trapped longs are what make the second-entry short, two-legged pullback to the EMA (in a downtrend), and the first break of the downtrend high-probability, not the sellers trying harder this time after they go back & study some more. Gotta realize the market is ruthless, in order to make money somebody's gotta lose it. What we're doing as price action traders is identifying where the most traders are ABOUT to be wrong so we can anticipate & profit from their exit orders moving the market in our direction - and transferring the money from their accounts to ours. It's war, act accordingly.
Exactly. And unfortunately market is design to trap us into these bad trades. This is why so many traders fail and give up too early before understanding what is really going on.
𝙩𝙚𝙭𝙩 𝙢𝙮 𝙣𝙪𝙢𝙗𝙚𝙧 𝙤𝙣 𝙒•𝙃•𝘼•𝙏•𝘼•𝙋•𝙋..
±❶ ❼•❸•❼ ❺•❸•⓿ ❻•❼•❷•❾'
Well said. I'm saving this in my notes.
@@ThomasWade I’m
One of these new traders. After seeing these explanations I’m like wow that’s me. I have trouble with always been on the wrong side and then timing all off then the move does go the way I thought from the beginning. I just realize I’m getting in too early and not knowing when to stay in. 🤦♂️ I’m still trying to understand these rules (2 leg pull back , trend line break rule) i kinda feel I understand because I notice just recently the breaks do get followed by extremes wow very interesting. I need more explanation don’t fully have it yet tho. Would be nice if you pulled up some common stocks apple Tesla QQQ and show in different time frames. I’m trying to look at the 1hr, 15 mins to see if I spot this concept playing out consistently
@@chrisbruce5533 Can you trade 1-5 minutes? I would recommend these. You can also learn the best on smaller timeframes. On higher timeframes you may wait very long time for a setup.
Bless you ,brother! Best content I've found.. price action is the way to go for sure!
Pullbacks are one of the best trading positions
thanks for your explanation❤
i like how you make it easy to understand the complicated
This is the best explanation i have seen in years, thank you. I was very confused today seeing breaks of channels + new lows , but bigger channels still holding.
𝙩𝙚𝙭𝙩 𝙢𝙮 𝙣𝙪𝙢𝙗𝙚𝙧 𝙤𝙣 𝙒•𝙃•𝘼•𝙏•𝘼•𝙋•𝙋...
±❶ ❼•❸•❼ ❺•❸•⓿ ❻•❼•❷•❾'
So glad I discovered your channel!
Very well explained!
Your videos are solid GOLD!!!
Every time I watch this video I get something new from it. Thank you so much you are so helpful and good at explaining!
Awesome. Appreciate your great video & work!! Currently practicing the two-legged pullback setup, with a good R:R for every trade.
My first try at MFF was unsuccessful, however, I am starting a free trial because I was in profits. I am going to implement the two legs knowledge on my swing strategy, I will give you the updates.
Can someone explain why he didn't short the 2nd entry short at 4:27? The candle I'm talking about is the candle that formed at 14.34. The signal bar he called was better but that seems to be in hindsight as I would've shorted the bearish candle at 14.34 with a stop above the previous green candle.
Because the 2ES triggered below bullish bar. We want to see momentum confirmation and sell below bearish bar.
Hi. Im using this concepts for a while and got the better results ive ever had in my life. So, thank you. Still i still dont get why that candle 4:27 at 14:34 in particular isnt a valid setup. It closed below the previous bullish bar. The next one is oviously better but how could we know not to trade the 14:34 bearish? This things doesnt let sleep at night. Thank you again. Its because a green candle can be bearish? So the green hammer candle before the real entry is valid?
This was pure gold. Thanks man
Fantastic explanation Thomas. Will be watching this again and again
𝙩𝙚𝙭𝙩 𝙢𝙮 𝙣𝙪𝙢𝙗𝙚𝙧 𝙤𝙣 𝙒•𝙃•𝘼•𝙏•𝘼•𝙋•𝙋..
±❶ ❼•❸•❼ ❺•❸•⓿ ❻•❼•❷•❾'
This is the kind of content I've been looking for. Learned a lot from your previous videos, especially in your 5 price action trading rules video. Thanks!
It's magical sir you have a magical setup .simple effective and again magical......God bless you and fulfill all your desire
Very precious information.. thankyou sir
Thank you. Great Content. Glad I found you. Subscribed. Paul
Hi, Why was the trade not possible at 12:45 . I can see a two legged pullback there also. Why do we need second leg to break higher for confirmation. Earlier in the video you did not wait for such confirmation. Can you please clarify?
At this time of the video I don't see the example you are talking about. Could you give me the time on the chart please?
@@ThomasWade Sorry, My mistake .English is not my first language so I watched the video again and again and got clarification.But this process created more new doubts 😊.I am using the chart time line.
1. At 15:34 did you take the sell trade?
2. At 16:07 does doji count as the middle leg?
3. In a two legend pullback/ pulldown do all candles of the first and third leg need to be green or red respectively?
Thanks
15:34 Thomas is explaining how the candles form here it's a failed 2nd entry long.. He would not take the trade because it did not touch the ema. And the signal bar is a doji. Signal bar need to be bearish also
i lover ur content. so slowly reviewing of your video. each video i watch 2 x.
God bless you, Thomas.
Hey man! You are amazing. Cheers 🥂
Incredible, Thank you thomas! From Venezuela
What I am not understanding is could you have taken a second entry short before taking the failed second entry long at 11:03? That's what's screwing with me. There is a second entry short there too correct?
Do you mean the 2ES at the very top of the trendline? That is the only 2ES I see. Was quite aggressive but it did confirm the channel.
Great explanation! Thank you.
Excellent content and teaching style. Thank you so much for sharing this.
This is an amazing explanation. but I have just 1 doubt, when to apply 2ES, and when to apply Failed 2EL to enter Short side trade? Thank you.
Important is to watch the trend. Draw trend line with minimum 3 touches.
Usually if the prices touches 21 ema/ trend line then that's a key entry point / candle.. Make sure the signal bar ( the bar before the main bar making the 2nd entry ) also need to be bullish incase of long..
You will need to watch more videos on this to fully understand the concept.
Hope this helps..
Awesome video Thomas. We cannot find a better and more clear explanation than this one. Thank you very much for sharing. Have a wonderful weekend and please keep posting.
🔥
𝙩𝙚𝙭𝙩 𝙢𝙮 𝙣𝙪𝙢𝙗𝙚𝙧 𝙤𝙣 𝙒•𝙃•𝘼•𝙏•𝘼•𝙋•𝙋...
±❶ ❼•❸•❼ ❺•❸•⓿ ❻•❼•❷•❾'
Great explanation on 2nd entry and failed entry.Thank you Thomas for the presentation.
𝙩𝙚𝙭𝙩 𝙢𝙮 𝙣𝙪𝙢𝙗𝙚𝙧 𝙤𝙣 𝙒•𝙃•𝘼•𝙏•𝘼•𝙋•𝙋...
±❶ ❼•❸•❼ ❺•❸•⓿ ❻•❼•❷•❾'
Awesome strategy..kipidap sifu
I’ve studied al brooks book but I was not able to find two legs and second entry…. But sir you really made it simple to understand, now I just have to do backtesting…
thank you so much sir..
Really appreciated!!
If you are in a down trend and there is a breakout up, will you still use the counting as if it is a down trend not an up trend, as in looking for only 1st and 2nd entry shorts? Do you only count in the direction of the overall trend or will you transition between the 2? Maybe there is a time when the transition happens?
You seem to be using the high point when looking to sell? I am getting mixed up I think. If it is a downtrend, you count from the low point, no? You seem to be counting from the high point. In a downtrend if you were looking for a reversal would you start to count from the high point? I assume you wouldn't do this though because it is an overall downtrend.
In downtrend you count from lows to count for second entries short.
You can also count from the high of the correction to cound for 2EL to fail. To sell failed second entry long setup.
But your main focus is to count from lows for first and second entry short.
hi ive been watching ur videos bubt its a bibt of a learning curve.. do u have an order from where i can start to become more advanced? as well as what time frame do u use in the videos i cant seem to find it
I trade 2000 tick chart. I would recommend checking beginner playlist first. I would start with the video about 5 price action rules, then how to count entries as well. I would also recommend checking video about money management.
Thanks for your lucid account of the two-legged pullback - you are indeed generous with your knowledge and expertise. As a neophyte, I have a question which no doubt reflects the overwhelmed novice's attempt to piece everything together. You refer to the smaller steep channel that constitutes the downtrend in question, and I can surmise that a minimum of two legs down in the small channel would be needed if we want to label the movement a trend, albeit perhaps a micro one, since it is enclosed within the larger channel you've also drawn. Not certain whether there are four or five legs to it, but after two legs down, why would none of the pullbacks (which look to have been ample point--wise) in this descent not be viable for executing a short? And how many legs do we need in order to qualify as a downtrend such as this, i.e., the descent before we reach the 4178 region for the legitimate two-legged pullback? I expect that I'll slap my forehead and wonder why your response failed to strike me as obvious. Do keep up the great work.
Hey Daryl, could you please shoot me an email with screenshot of the setup you are talking about?
My email is thomaswadetrading@gmail.com
Don't mean to be rude or antyhing, it is just much easier for us to understand this with screenshots.
Superb bro ! you are amazing !
Just great. Thanks. Video with a detailed explanation. The video helped a lot. Such videos are very useful for understanding the logic and meaning of price movement.
Gold is the only comment I have for this wonderful video.
Thanks a lot Thomas.
hey Thomas, you may have noticed I have been watching your videos and it's been really helpful. I have watched almost all of the videos, but I have a doubt. In other videos, you said not to take short entries when the candle is above the moving average, But in this video, you have taken such trades in the trading range, would you please explain why? For exp: video at 6:45. Thank you!
In trading ranges we buy low and sell high so naturally we will take setups on the opposite side of the EMA, that is completely fine. Also when the setups comes from main trendline, it can be taken from the opposite side of the EMA. Apart from that you for the most part want to wait for confirmation with EMA and wait for push below. But in trading we can trade on the opposite side of EMA.
@@ThomasWade I appreciate it, Thomas. Thank you. One request, please make a video on today's price action. I really want to know your side of the story, especially at the open.
Best explanation about looking into MM during downtrend day. Made note's of it. Hopefully next time I will use this strategy to scalp. Thanks for the great explanation.
𝙩𝙚𝙭𝙩 𝙢𝙮 𝙣𝙪𝙢𝙗𝙚𝙧 𝙤𝙣 𝙒•𝙃•𝘼•𝙏•𝘼•𝙋•𝙋..
±❶ ❼•❸•❼ ❺•❸•⓿ ❻•❼•❷•❾'
Thanks for your great video! One question, 4:33 mentioned the red arrow entry point, that's actually not 2ES, what entry point do you call this? If the 2ES signal bar is not ideal, can we always wait for another qualified signal bar to enter short position?
This video was about showing the two legged pullback and how market moves. Correct this is just visual 2nd entry, not technical. But I didn't want to confuse anyone or make the video really long.
Is it advised to ever enter on a first entry IF you have a good signal bar and confluence with the EMA and trend? Higher risk doing this?
For this strategy never take 1st entry! Only 2nd
It's a main rule.
Can i use this on higher timeframes like the H4 and daily timeframes or its only for sculping?
Daily is nice chart to use this but high probability setups take time to develop. So you may wait a long time for a good setup. This is why I recommend 1-5 minute. You can still use the price action rules because it is universal.
Glad I found your channel
❤ ❤❤❤❤❤
Really enjoyed and loved it.
Great video, Thomas. So a small inside bear doji in a bull leg wouldn't count as the start of a new leg until a bull bar's low is breached, correct?
You can consider it as a start of new leg if the bearish inside bar gets break below its low.
Are you using an indicator for those signal arrows?
I am not. That is standard Ninjatrader drawing tool.
Do you take into account the level 2 and volume coming in to each candle as well?
I don't look at level 2.
great explanation.
Superb content
Thanks. Another vid explaining would be nice. I think I got it I’m new trader but would be nice to have another one explanation. I’m very interested in ur concept I am trying to look at charts to see if I see this but I’m not sure. Next video u do can you go to multiple charts (apple , Tesla , qqq ) and time frames. Thanks.
Hi, unfortunately I just don't have the time to check other instruments. I trade the entire day and after my trading, I do the video.
Thanks for the education
Great job of explaining enjoying the content
𝙩𝙚𝙭𝙩 𝙢𝙮 𝙣𝙪𝙢𝙗𝙚𝙧 𝙤𝙣 𝙒•𝙃•𝘼•𝙏•𝘼•𝙋•𝙋...
±❶ ❼•❸•❼ ❺•❸•⓿ ❻•❼•❷•❾'
Wonderful. Thank you
Thomas, two thumbs up, way up, for your first rate two legged move analysis. As philosopher Ralph Waldo Emerson observed, "..deep simplicity is the supreme elegance."
The truth shall set us all free on the market plane as well as higher spiritual target levels. Dom Perignon cheers. New US subscriber.
Hi Thomas , in 13:25 of the video and 16min37 of the chart isn't a good signal bar for a short ? (second red candles after the higher high double top) . If not why ?
Correct the signal bar is not so good. It has a bullish stim at the bottom and closed above EMA. We are shorting so bar should close below EMA and be bearish.
@@ThomasWade I mean it looks for me like a good bearish signal bar and a second legged pull back just after we break the trend ( so we suppose to create a new extreme) , should i have take it in real life ? Sorry my english isn't perfect :)
@@zenoo514 You are correct, context is good there for short. But I wouldn't consider it a good signal bar. With better signal bar you could have taken that trade for sure.
appreciate the effort, you're amazing
Enjoyed the video and found it helpful. One question, at 13:30 where you say "first entry long, triggered above this bullish bar". Why didn't you count the 3rd bar from the top as the first entry long? I know the bar before it is a spinning top but it is green and the bar to it's right did break that high.
Because the way I count, double tops and bottoms reset the count. So you are technically correct but I reset the count and start over from the double top. Other traders may differ on this, this is how I prefer to count.
Hi dear , great explanation...qhat abt time frame?
I trade 2000 tick chart. 1-5 min are good too.
Thomas….At 4:31 of the video, you said “this is the first bearish bar” under the red arrow. What was wrong with the large red bar to the left of that (3 bars to the left of it)? Wouldn’t that have been the first bearish bar? Thanks for your help.
Great question, it would be good had there been a trigger. But notice there was no break below the low of that bearish bar. So we cannot enter there because there was no trigger just yet. The bar I marked was the first bearish bar where prices broke below.
Why was the count not reset after a first higher high at 14:10 mark?
Which count reset, for longs?
@@ThomasWade Yeah thanks- right at 14:03 to be exact. I am confused. I see two small legs that look like it could be starting to reverse up. After it made what appears to look like a higher high to me, you said it was a second entry short. After it made a higher high there, I guess I would have thought to start reset counting for a long or short entry at that point possibly. I guess I am not fully clear what constitutes a higher high/higher low.
@@2nice79 I am not sure I fully understand. From the most recent lowest low I counted 2ES which is correct. There is a two legged pullback. Now, you can reset the count at the high of the correction and count for longs. Longs to fail - F2EL.
Let me know if it is clear.
@@ThomasWadeok, maybe I need to pay more attention in spots in your videos where you are looking for failures. Maybe I am confused because I am not able to clearly define why you are looking for a failure vs looking for a long in this spot. Do you have a good video as a reference point that you can think of that gets deeper into failure situations?
@@2nice79 I am looking for short setups because the downtrend still needs new low.
Here are the videos about failed second entries.
th-cam.com/video/gXRXmxEcRx4/w-d-xo.html&ab_channel=ThomasWade
th-cam.com/video/s2ivxFOJl0U/w-d-xo.html&ab_channel=ThomasWade
Great content sir. But would you please expand all short forms you use in your trading videos. That would be of great help.
Hello,
Here are some tutorial videos
th-cam.com/video/TegF3yYjnng/w-d-xo.html&ab_channel=ThomasWade
th-cam.com/video/GrRbOItgLgc/w-d-xo.html&ab_channel=ThomasWade
Very well presentation of this move thank you sir
𝙩𝙚𝙭𝙩 𝙢𝙮 𝙣𝙪𝙢𝙗𝙚𝙧 𝙤𝙣 𝙒•𝙃•𝘼•𝙏•𝘼•𝙋•𝙋..
±❶ ❼•❸•❼ ❺•❸•⓿ ❻•❼•❷•❾'
Thank you so much sir.....❤
4m-38s. There were 3 bear bars.The first bar is just a breakout. Why didn't we take into account the second big bearish bar? We entered the sale at the third bar. Although the 2 bar is big strong. have we entered the third entry? Maybe there was a completed movement on two micro legs as an entrance ? I would like to understand the entry points.Settings. more detailed information with an explanation. With the legs clear thank you the video is excellent. Brother, thank you. You explain it well. I began to understand better
There was technically a second entry below that bullish bar (1st bar at the EMA) But we want to sell so we need to wait fo bearish red signal bar. The reason why we entered where I marked the arrow is because that is the FIRST BEARISH bar where prices ticked below.
Nice video as usual👍
𝙩𝙚𝙭𝙩 𝙢𝙮 𝙣𝙪𝙢𝙗𝙚𝙧 𝙤𝙣 𝙒•𝙃•𝘼•𝙏•𝘼•𝙋•𝙋..
±❶ ❼•❸•❼ ❺•❸•⓿ ❻•❼•❷•❾'
Question: can the ‘break of trend’ bar also be the 1st [counter] entry bar?
It can.
Hi Thomas, can u pl help me with one query, in correction in bull, a bear bar crossing 1tick above previous bar should be considered start of leg 1
Not sure If I understand correctly. It would be start of the first leg but counting from the high. So 1EL.
@@ThomasWade Many thanks for answering my query
Are 2nd entry moves more prominent on tick charts? Beacause 1 min charts show that majority facilitate only 1st entries and 2nd entries gravitate towrds sideways movement
Price action is universal. How many days have you watched on min chart? It is normal for some days to not offer that many setups but you need to backtest lot of days.
@@ThomasWade thank you. I will try to expand the range of days substantially.
Hi Thomas, I sometimes confused when to start counting the two legged pull back, thanks
I would recommend watching How to count entries video. In beginner playlist as well.
@@ThomasWade awesome, thank you!
what ema are you using, btw I find this video very educational 👍
21 bar EMA. I am glad you find the video helpful.
The promo code of funded company in the description section is it still available sir?
Yes, right now it is 50% though I believe. Their promos change. I assume they are going to have 90% off discount soon. Apex has it often.
Amazing explanation bro thank you and does this work for btc?
Price action reflects human behavior and it works on all markets. However cryptos are fairly new and they are influenced by different factors. When I took a look at btc chart I definitely saw the same things apply but since I haven't been trading BTC for a long time I have no real evidence for it. I would recommend making a quick look and backtest.
The GOAT 😍
I'm trying hard to copy your skills. I trade gold and I'm confused about the Take profit. How many pips should I take?
This video should help. Especially towards the end. th-cam.com/video/JGULPdDOWbw/w-d-xo.html
so to confirm second entries - the bars closing below the previous bars low and bar closing above the previous bar highs ? am i right ?
Break above previous bar doesn't matter. The signal bar itself needs to have a beak above its high.
What broker do you use, is it a zero spread one ?
I use Ninjatrader brokerage and AMP Futures, there is no spread you pay commissions.
@@ThomasWadeI'll have a look at them. Are withdrawals and deposit payments easy to be done with them ?
@@Mike-xt9fm Yes, they have a great customer service and fees are resonable ( I am not sponsored by them ). But these are decent brokers and they have good trading platforms. AMP has even platforms for free, they are not that great to use but it is enough for beginners.
Anyone can successfully earn consistent passive income from forex and stocks investments, all you need is a good mindset, the right information, and a very good investment management strategy. Over time I realized when I hired an investment manager, that's when I started to have stable income from my investments.
That last part about having a proper investment management is the most important point, but sadly the most overlooked.
@@domingapark261 a lot of us experienced this. We do realize how important it is, but after multiple losses. That’s exactly what happened to me.
I’ve always wanted a financial manager to guide me with my forex and stocks investments, but my problem has always been where I’ll search for one. Do you have suggestions?
@@josiahsantos773 i don’t know a lot of them, but I’ve worked with very excellent fund managers.
My best pick for you will be William Stanley PJ.
I’ll help you with his direct contact, that’s what you can use to reach him on most messaging apps.
buen video bro. saludos desde argentina.
𝙩𝙚𝙭𝙩 𝙢𝙮 𝙣𝙪𝙢𝙗𝙚𝙧 𝙤𝙣 𝙒•𝙃•𝘼•𝙏•𝘼•𝙋•𝙋...
±❶ ❼•❸•❼ ❺•❸•⓿ ❻•❼•❷•❾'
any time frame works w this ? and where are the entry points? thx
I use 2000 tick chart. You can use 1-5 minute charts. Key entry points are EMA, trendlines, support resistance.
@@ThomasWade thx
Thank you 🙏🏻💯
I like how you finished, Thomas, with God bless everybody. Excellent work - still struggling to find good entries on live Sim charts
Not today but the NQ follows the ES so have you ever used this on the NQ?
Works the same on the NQ, but you’ll get terrible slippage in the NQ
@@ThomasWade well I’ve traded the NQ a few times at the same time as the ES just to make a little more, but when my entry order is filled, about half the time I would get slippage to the point that it throws my risk:reward off, so I eventually stopped trading NQ all together. (I use stop orders not limit orders to enter so this could be a factor)
@@voss1019 Fair enough. If there is a slippage then it is definitely a no go... There are so many reliable markets such as ES without any slippage.
𝙩𝙚𝙭𝙩 𝙢𝙮 𝙣𝙪𝙢𝙗𝙚𝙧 𝙤𝙣 𝙒•𝙃•𝘼•𝙏•𝘼•𝙋•𝙋..
±❶ ❼•❸•❼ ❺•❸•⓿ ❻•❼•❷•❾'
What’s the length on the Ema
21 bar EMA.
Thanks
Does this work on all timeframes?
Yes it does. I would recommend smaller timeframes though as it is the most suitable for scalping.
@@ThomasWade you’re the best PAT I’ve seen. Thank you for taking time to reply
I was a bit confused by the two legs but now it's clear in summary the correction phase should have two legs, the second coupled by trendline or other support is the optimal entry, right?
Correct. I recommend quickly going through other most popular videos on my channel. They cover it in more details.
Thank you very much
Thank you!
Should the 2nd bullish leg break above the 1st bullish leg (like in your video), as sometimes there is a 2nd bullish leg that kind of is inside the range of the 1st bullish leg, and sometimes the 2nd attempt to sell happens within here , but then price can simply just keep going higher sometimes.
I've seen on many charts trying to use this method, it can simply turn into one big uptrend (that we don't see in realtime as its just unfolding), how do we try to avoid that perhaps?
The second leg can be smaller than the first leg.
You need to follow other price action rules. The two legged pullback is just part of the price action trading.
I am missing 2 legged pullback for my price action but kind of confused.But by watching more and studying more will get it.
Just matter of time
Thank you so much Thomas Wade. Your channel is the best I came across to understand Price Action.
When you get some time can you please share a video that delves deeper into First entry long, second entry long, First entry short, Second entry short… the very basics of these moves… thanks you again
Hello, I have couple of videos about it.
th-cam.com/video/GrRbOItgLgc/w-d-xo.html&ab_channel=ThomasWade
th-cam.com/video/NNzCegosXu8/w-d-xo.html&ab_channel=ThomasWade
Please mention which timeline are you using?
2000 tick chart. 1-5 minute charts are good as well.
Thank you Thomas
𝙩𝙚𝙭𝙩 𝙢𝙮 𝙣𝙪𝙢𝙗𝙚𝙧 𝙤𝙣 𝙒•𝙃•𝘼•𝙏•𝘼•𝙋•𝙋..
±❶ ❼•❸•❼ ❺•❸•⓿ ❻•❼•❷•❾'