Why Your Entries Keep Failing You
In this tutorial, the speaker explains why many traders lose money by entering trades immediately after a price break. A break alone is not reliable because price can wick through, close beyond, and then reverse, leading to false breakouts. Instead, the speaker recommends waiting for a "fair value gap," a three‑candle pattern where the middle candle’s explosive move creates a gap between the wicks of the first and third candles, indicating genuine buyer or seller control. Once the gap appears, the trader should wait for a retest of the broken level; if the price holds on the retest, that serves as confirmation. The entry is made on the retest, the stop is placed just beyond the retest candle, and the trade should target a minimum 2:1 reward‑to‑risk ratio. Following this method aims to eliminate losses from false breakouts.
