In every market, there is always an entry and exit point, but in order not to jeopardize the market strategy, you need to understand when to enter the market and when to exit the market. Although the major thing many traders find difficult in technical analysis is when to enter and exit the market professionally without liquidity.
Entering and exiting the market as a professional trader without the effect of liquidity requires you to trade like a smart trader with a good trading strategy. In crypto trading, if you want to be a smart trader, you need to imbibe some strategies that can help you trade profitably. Traders adopt strategies like trend line strategy, smart money concept, pattern strategy, etc.
Nevertheless, there are strategies that give you confirmation when to enter the market, and they definitely give 80% order block mitigation to pick up your order. This strategy is called CONFIRMATORY ENTERING.
Confirmatory entering.
In crypto technical analysis, confirmatory entering represents the acceptance of a new block. This simply implies the possibility of confirmatory entry when a new order block is formed. To make this more simple, confirmatory entering is an order block that gives you the signal of when to enter the market.
Confirmatory entry occurs in different forms during trading chart analysis. In this article, I will be doing a simple analysis of how to discover confirmatory entries on a chart during analysis.
How do you discover confirmatory entries in a chart?
Two breaks in market structure.
A break in market structure simply means a market changing structure from one direction toward another. This implies that the market was formerly taking a direction before it switched structures. Therefore, to identify confirmatory entries in a chart, one of the major things you will see is two breaks in market structure [BMS]. This two break in market structure occurs before the confirmatory entering order block is formed.
After the two breaks in market structures occur, the next new order block that will be formed is the confirmatory entry, which will give you a signal to enter the market. At this point, you have 80% assurance that the market will surely pick up your order and then swing up.
Unmitigated demands.
The market is split into two phases: the demand zone and the supply zone; the demand is below while the supply is above. To identify confirmatory entries in trading analysis, you should regularly be conscious of identifying order blocks in the trading chart and how trades are being mitigated on every order block.
Mitigation helps you know which order blocks are being filled or not. For confirmatory entry, it regularly has an unmitigated order block or unmitigated demand. This unmitigated demand might occur around the support zone or the demand zone. For you to identify the unmitigated demand, it occurs between the demand zone of the first break in market structure and the demand zone of the second break in market structure. The second demand zone will leave the first demand zone unmitigated.
As a trader, confirmatory entry is another trading strategy you can imbibe in your trading analysis, which can help you through your trading journey. please understand that it might not fully appear like this on trading view chart analysis.
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