Chapter 10 · Part Three
Entry Precision
Two ways in. Pick deliberately, not by mood.
About 6 minutes
The flip candle entry
The flip candle is the candle that confirms the structural shift. It is the last opposing candle before the displacement.
For longs, that is the last bearish candle before the bullish displacement. Enter at its close. For shorts, the last bullish candle before the bearish displacement. Same concept reversed.
The FVG retracement entry
After the displacement creates an FVG, wait for price to retrace into it. The first touch of the gap is the entry. Waiting for the fifty percent level, consequent encroachment, gets you a better price and a tighter stop when it fills, at the cost of the setups that turn before they reach it.
Which to use
| Flip candle | FVG retracement | |
|---|---|---|
| Timing | Earlier | Later |
| Distance to stop | Wider | Tighter |
| Resulting size | Smaller | Larger |
| R:R | Good | Best |
| Risk profile | More aggressive | More conservative |
| Best for | Experienced traders | Newer traders |
Check yourself
You take the flip candle entry instead of waiting for the FVG fill. What changes?
Before you move on
- You know which entry you default to, and why
- You understand that the entry choice changes size, not stop placement
- You can find consequent encroachment on an FVG
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