#3: Entry trigger
At this point:
You know what to do (identify market structure) and where to enter (area of value).
Now the final part of the equation is to know when to enter.
Personally, I like to enter when the market has shown signals of reversal — thus
confirming my bias.
This can be in the form of reversal price patterns like:
Hammer
Shooting Star
Bullish Engulfing Pattern
Bearish Engulfing pattern
Let me share with you a few examples of The M.A.E Formula in action…
GBP/USD Daily: Identify the market structure
GBP/USD Daily: Wait for the price to reach an area of value
GBP/USD Daily: Enter on a valid entry trigger
Another example…
T-Bond 4-hour: Identify the market structure
T-Bond 4-hour: Wait for the price to approach an area of value
T-Bond 4-hour: Enter on a valid entry trigger
Can you see how everything fits together now?
So, what’s next?
You’ve just learned what price action trading is all about, and how you can use it and to
get a “feel” for the markets.
If you learn it well, it will improve your entries, exits and trade management.
Now… it’s time to put these techniques into practice.😄