Practical Trading Recommendations

Below are charts with entry point examples. What you see here is not something unique, but a simple consequence of trading theory, which is published on the website and grouped by key topics. The purpose of these charts is to demonstrate the practical application of theory and provide beginner traders with a direction for development.

At the end of the examples, I have attached a statement from one of my students who passed the practical exam after completing my training and no longer trades on a "demo account" but has moved to a real trading account. This statistic will help beginner traders understand concepts such as WinRate of a trading system and examine the probability distribution of trades. Additionally, the presented statement will visually illustrate why money management and risk management are very important.

Example 1

Chart taken from the TradingView platform - Nasdaq Index (NQ), TF - 4 hours.

On the 4-hour chart, we will analyze a classic example of working with levels. I specifically chose Nasdaq because, at the beginning of the U.S. trading session, it often experiences false breakouts followed by a trending movement in the opposite direction.

This example covers all the key factors considered when determining entry points for a trade and trade targets, as well as how to properly manage risk (stop-loss) in a trade.

Below is the same Nasdaq Index (NQ) chart but on a 15-minute timeframe. This timeframe is commonly used by day traders whose trades and targets do not extend beyond the trading session.

Chart taken from the TradingView platform - Nasdaq Index (NQ), 15-minute timeframe.

1. Resistance range on the Nasdaq Index (21900-22000), taken from the higher H4 timeframe, as shown in the example above.
2. A pin bar that serves as the first signal of problems for buyers (inability to push prices higher, demand deficit).
3. A false breakout of the level - an attempt to push the market higher through a sharp price movement (as I mentioned earlier, this typically happens at the start of the U.S. trading session). It also triggers stop orders of short sellers and activates breakout orders from traders who were waiting for the level to break. All these orders combined create significant demand (liquidity ) that Smart Money use to open speculative short positions or simply to take profits on existing long positions.
4. Since demand is weak at resistance levels, according to Price Action rules, we need to wait for a Bearish Engulfing pattern, which indicates that bears are in control and ready to sell aggressively. A break below the low of the false breakout bar signals the start of a trend in the opposite direction.
5. Placing a protective stop-loss order when opening a short position.
6. Trade target - the opposite impulse level, where buyers regained control of the price.

Note: It is essential to understand that a trade and the reasons behind entering it are a combination of factors in technical analysis that we consider before opening a position. Key factors such as support and resistance levels, pin bars, false breakouts, and Price Action patterns make sense when used together rather than in isolation.

It is also crucial to consider another condition that is essential for any trade - money management. A trader must understand that even when following all the conditions, there is no guarantee that the market will move in their favor. Therefore, they must not only manage risk in each individual trade but also transfer it across trades to maintain a consistent profit over the long run.

The key condition for achieving profitability over multiple trades is that for every $1 of risk, you should aim for a minimum of $3 in potential profit. This means that the distance to the target (where the trade is closed) in points should be three times greater than the distance to the stop-loss order, which limits risk in the trade.

Example 2

Chart taken from TradingView platform - Bitcoin, TF - 4 hours

On the Bitcoin chart TF - 4 hours, an impulsive bearish wave is marked as a resistance level and our area of interest.

Chart taken from TradingView platform - Bitcoin, TF - 15 min

1. The resistance level that we marked as the beginning of the impulsive bearish wave.
2. We wait at the level (or more precisely, within the range) for our pin bars that indicate problems for buyers and their inability to break resistance to achieve higher Bitcoin prices.
3. Key moment of the level - a false breakout. As in the previous example, we want to see an attempt to push the price up without success. Below the volume bars, we can see a surge in trading activity, which shows how buyers are actively trying to raise prices. According to Smart Money Concepts, in the section on liquidity grabs, we have already discussed that, locally, large capital can manipulate prices (if the market allows it) to attract participants. At the same time, stop-losses are triggered, and breakout orders placed beyond the conditional resistance level are executed. All this facilitates the liquidation of previously opened long positions without significant price changes.
4. Mark the low of the potential false breakout bar, and when the price moves below this low, a sell order is executed. Following classic Price Action - bearish engulfing.
5. Setting a mandatory protective stop-loss order, as there is a chance that the breakout might not be false. Therefore, it is necessary to protect the deposit from risks. By classic rules, the price should not go above the bar we consider false, so the stop-loss is placed just above its peak + a few pips for the broker's or exchange's commission, depending on where the trader is trading.
6. The target for the trade is the opposite level, where buyers previously took control of the market.

As always, we consider the ideal 3:1 scenario, where for every dollar of risk, the potential profit should be at least 3 dollars. If this ratio is not met, then there is no trade.

Example 3

Chart from CME Group Euro Futures. Equivalent to the EUR/USD instrument on Forex, TF - 4 hours

On the 4-hour Euro futures chart, a bearish impulse wave is marked as a resistance level and our area of interest.

Chart from CME Group Euro Futures, TF - 15 min.

1. As usual, we draw the resistance level (range) from the higher TF - 4 hours.
2. In the range, we wait for the Pin Bar pattern as an attempt to rise that fails. In this example, the pin bar is not as clearly visible as on other time frames, but this does not change its significance, as you will always see empty waves without volume spikes (low interest in market growth), after which the market starts to decline.
3. A false breakout is the key attribute of our increased attention. As always, the same characteristics: high volume, an attempt to rise above the pin bar or a low-volume wave, and as a result, the price starts to decline.
4. We highlight the low of the potential false breakout bar and enter the trade when bearish engulfing occurs.
5. We set a stop-loss (protective order) to control risks in the trade.
6. We determine the target as the opposite level from which the price started rising.

It is important to remember the 3-to-1 rule, where for every dollar of risk, we aim to make at least 3 dollars in profit.

Independent Trading of a Student

Example of a practical trading session by one of my students, using a demo account (until the exam is passed, I do not recommend using real funds).

The goal of this exam is to complete at least 40 trades following the rules of the trading system we study in lessons and assess the results of these trades.

A demo account is opened with any broker or exchange, after which trading begins with the minimum lot by default. The goal of this exam is not to show absolute profit but to evaluate the probability distribution of trades in the trading system.

• The first important metric is the win rate of the system, which you can see in the Profit Trades (63.27%) and Loss Trades (36.73%) columns. This metric represents the probability distribution of the trading system. In simple terms, out of 100 trades, an average of 63 will be profitable, and 37 will be losing trades (classic level-based trading).
• The second metric is the Profit Factor, which shows how much profit is generated for every dollar of loss. In this example, it is approximately 2.5. The higher this metric, the more profitable the trading system is. The minimum acceptable level, in my opinion, is 1.8-2, considering all commissions. With such a ratio, the deposit is likely to grow over time.
• The third metric is Maximal DrawDown. This indicates account drawdown as the ratio of free funds to the total balance. In this case, the drawdown is near zero because the trading system enforces the use of stop losses and prevents deep drawdowns.

Conclusion: The information provided on the website in the form of articles and video tutorials is sufficient for a solid introduction to trading. Anyone can master this profession and do so for free by utilizing the materials I have compiled.

Those who wish to study trading in greater depth under my mentorship can enroll in the course through the feedback form in the trading courses section.