Market Rules EXPLAINED - How To Count Entries

About this Video

• Video Title: Market Rules EXPLAINED - How To Count Entries
• Channel: Thomas Wade
• Speakers: Thomas Wade
• Duration: 14:37

Introduction

This video explains how to count entries in price action trading. The core concept is that markets move in pairs (two-legged moves or pullbacks), creating high-probability setups for second entries. The video demonstrates how to identify these patterns and correctly count entries in both uptrends and downtrends, emphasizing the importance of considering the most recent price action.

Key Takeaways

• Market Moves in Pairs: Markets frequently move in two-legged patterns (pullbacks), offering high-probability trading opportunities.
• Counting Entries: Counting entries involves identifying the highest high or lowest low of a recent move and then counting subsequent bearish or bullish moves until a "trigger" occurs (a bar breaking the previous bar's high or low by at least one tick).
• First vs. Second Entries: First entries are less reliable; second entries within a two-legged pullback are considered higher-probability setups.
• Pivot Points Reset the Count: Double tops, double bottoms, and instances where the price breaks a previous swing high or low reset the entry count. The count begins anew from the new pivot point.
• Consider Most Recent Price Action: Always base your count on the most recent price action and the prevailing trend to get an accurate count.