Here’s your paragraph broken down into clear, easy-to-follow key points without losing anything important:
Buying with Stop Orders (Long Entries)
1. Higher Time Frame Bias
o Monthly and/or weekly charts must suggest institutional order flow is aiming for a PD Array
above daily market price.
o PD Array examples: Weekly/monthly order block (bearish above price) or fair value gap
above price.
2. Daily Chart Condition
o Wait for a bearish daily candle (down close).
o Candle must fully close before entry is valid (not while forming).
3. Entry Technique
o Place buy stop at the opening price of the bearish candle.
o Only consider this if:
Market is in a long-term uptrend OR
Price is in a discount market.
o Every down candle = potential bullish order block (buying opportunity for smart money).
o If price trades back to that opening and goes through it, likely to move higher.
4. If Entry Doesn’t Trigger
o Skip to the next daily down candle and repeat.
o Continue until the higher-timeframe PD array target is reached.
5. Adding Positions / Re-entries
o If trade moves several hundred pips in your favor, take partial profits.
o If price retraces back to the same opening price, you can re-enter with that same partial size.
o Keep doing this with each new down candle until target is met.
6. Caution
o Closer to premium levels (overbought) on higher time frames = weaker buying signals.
o Prefer entries at or below equilibrium of higher timeframe range.
Selling with Stop Orders (Short Entries)
1. Higher Time Frame Bias
o Monthly and/or weekly charts must suggest institutional order flow is aiming for a PD Array
below daily market price.
o PD Array examples: Weekly/monthly order block (bullish below price) or fair value gap
below price.
2. Daily Chart Condition
o Wait for a bullish daily candle (up close).
o Candle must fully close before entry is valid.
3. Entry Technique
o Place sell stop at the opening price of the bullish candle.
o Every up candle = potential bearish order block (selling opportunity).
o Expect weakness to push price lower.
4. If Entry Doesn’t Trigger
o Move to the next daily up candle and repeat until target is hit.
5. Adding Positions / Re-entries
o If trade moves several hundred pips in your favor, take partial profits.
o If price retraces back to the same opening price, you can re-enter short with that partial size.
o Works well when higher time frame PD array is still below price.
General Notes for Both Long & Short
Execution Timeframe: Daily chart for entries, monthly/weekly for directional bias.
Stop Loss: Below recent daily swing low for longs; above recent daily swing high for shorts (explained
in later lessons).
Order Block Theory Connection:
o Down candle before bullish move = bullish order block.
o Up candle before bearish move = bearish order block.
o Entry is made at the opening price of these candles.
Missed Trades: If no fill, just wait for the next qualifying candle.
Scaling In: Start with smaller size, add more on retracements to the same candle’s open after taking
partial profits.
End Goal: Continue this process until price reaches the target PD array on monthly/weekly chart.
