Important: Before you watch the video you should read text version below!

This entry model is based on several different entry confirmations. To understand the model, you need basic trading knowledge.

In the picture below, you can see how the market structure shifts from short to long as the price breaks above the MA (Moving Average). I usually use MAs to detect changes in trend direction on any time frame, and I only use the 200 SMA.

Once the price closes and stays above the MA, I usually look to enter the market. Confirmation occurs each time the price pulls back to the MA and forms a candlestick pattern (blue circle). In this case, I have additional confirmation from a support line (double bottom).

Time Frames – This is not a trend reversal model; it is a trend continuation model where you follow the trend from larger time frames, aiming to catch swings on smaller time frames using this approach.

Entry models, in general, are not miracle solutions, and you should not trade based solely on them. In this case, I am trading BTC/USD on the M1 time frame. I know that BTC is attempting to reach an all-time high, and the dollar index has already reached resistance, which suggests the dollar will weaken. BTC and the Dollar Index are not directly correlated, but a weak dollar can only help. The point is, I expect a buying direction and am trying to find an optimal entry like this one.

In the blue circle is my favorite candlestick pattern; you can call it whatever you like. The most important thing is that you can replace it with any pattern if you don’t prefer this one.

Important: you should never use any entry model solely because it appears; you should first determine the direction based on fundamental analysis. If you’re not strong in fundamental analysis, use a higher time frame (H4, Daily, etc.) as additional confirmation, meaning trade in the direction of the larger time frame.

This is an example of a bullish entry model; for bearish entries, everything is simply reversed.

This pattern tends to perform well in sideways markets on larger time frames, such as M30 and H1. If I spot this pattern on these higher time frames, combined with support and resistance areas or supply and demand zones, I’ll often consider taking an entry as well.

More Examples

Here, you can find more examples of Entry Model 1 to better understand it.

Example 2

This is an old example from my journaling archive. Please ignore the RSI and the orange SMA 50.

As you can see in the image below, the price broke the SMA 200 and then retested it. A pattern formed at the SMA 200, and I felt confident about taking a trade as soon as the pattern formed. However, I was a bit worried because this red line had acted as resistance in the past. Therefore, I waited for another candle to close before entering the trade. The pair was EUR/USD on the H1 time frame.

This black horizontal line pointing to the candle after the pattern represents confirmation that the price closed successfully above the red line (previous resistance). I was essentially waiting for additional confirmation before entering the trade.

Example 3

On the GBP/USD M5 timeframe, the price crossed above the 200 SMA, then retested it and formed a pattern around the SMA 200.

Example 4

On the XAU/USD M5 time frame, this example is somewhat advanced, as the pattern does not align precisely with the MA200. The pattern is also not identical, but as long as the second candle is larger than the first, it suggests that the price is likely to move in that direction.

The first trade entry, marked by the blue circle on the left, shows the price crossing the MA, retesting it, and continuing in a bullish direction.

In the second example, marked by the red circle on the right, the price initially crosses below the MA, then retests it, forms a pattern, and continues in a bearish direction. I actually took this entry, but I missed the first one.

Another example

The price is consolidating?

The question is: what should you do when the price is consolidating? This is actually my favorite time to trade. The list below is my personal collection of previous trades—let’s call them A+ setups. I keep this list to remind myself, from time to time, of what I’m looking for. By reviewing them, I also memorize them at the same time.

Lets start with first example.

The chart below represents GOLD on the M5 time frame. The chart shows you everything; however, I will explain. Once the price starts consolidating, you should mark support or resistance, depending on what you are looking for. In this case, I was looking to sell. The SMA200 is above the price, and then we have a breakout to the downside. The rest is history.

The only way to trade consolidation/accumulation is by using breakouts. They need to be visible and clear. Additionally, they should be supported by the trend from a higher time frame or by fundamentals (both is ideal).

Second example,

This is a more advanced example. The price is below the SMA200. There were actually two signals: first, after the price broke the SMA200, closed below, and retested it, I sold there. However, I realized the price wasn’t pushing down. After some time, the price formed a second peak (candlestick formation below the upper arrow), and I simply created a resistance level. Then, I waited for the breakout. It was simple.

Third example,

I traded all of these examples, and this one was also easy. I was expecting the price to move up, but that’s not enough reason to open the trade. After drawing the resistance, I realized that if the price breaks the SMA200 and this resistance level (the black horizontal line), I would have more than enough reasons to enter the trade.

Important: The breakout needs to be clean and visible. As you can see, this solid bullish candle breaks both the SMA200 and the resistance line clearly. This is what we are looking for.

Fourth Example,

Clearly, this is a trend continuation. After the price consolidates and stays above the SMA200, all we need to do is wait for a clear breakout.

Important: Consolidation needs to be clear and visible, and it should contain a lot of candlesticks. Just check my examples..

Trend Continuation entry model

I’m using this setups to enter the trade:

• I don’t have a clean setup on the SMA200. Once the chart is clear, I can use breakouts to enter the trade when the direction is clear. The breakout is an additional confirmation.
• I use them to add another position if I’ve already entered on the SMA200 (if a pattern is formed).
• Alternatively, if I have strong fundamentals, I join the trend.

You will need a bit more experience to use the examples below.