A trader explains "the repair," an entry strategy that uses wickless candles after sharp downturns as magnetic zones to buy into. He combines this with price structure and confluence factors like failed lows, targeting 15+ points with a 10-point stop.
As a trader, as far as entry goes, it's one of my favorites and it's called the repair. It's basically a candle starts, it doesn't have a wick on it. You had that strong move down, you had this candle with no wick on it. Well, for me, I see this, that's a magnet for price to revert back into because if you think about it, this no wick, you had no participants that were able to enter on prices above. So you have all their limit orders that are staying here, here, here. They were never filled, so there's no participation there. So then now you have a beautiful fork setup happening. You had that low that didn't break, and now you have this magnet here. Now you have a lot of confluence to take this entry long and maybe even squeeze out more than 15 points on your first initial entry. You keep your 10-point stop, but maybe you take more risk because you have such a strong magnet. You know that these orders are going to get hit. You know that late shorts are offside. You can take more meat off the bone on your initial entry.
