A trader explains how to enter long positions using hourly pivot levels and break-and-hold patterns. Wait for price to dip below a pivot, reject it, and close back above. Enter near the pivot with your stop a single pixel below it.
The trend is up at the hourly time frame. I have already identified the lows, the highs. Pivoting point is going to be this one. I might be ignoring the wicks of the candles on the hourly and looking only for the bodies of the candles. So I'm going to be drawing the level simply at the open of this one candle. This is my critical level, and usually I'm having high confidence in those pivoting points that have those levels. So at those levels, I'm looking for entry in my positions during the day. On the pre-market, price is going to be closer to either the higher level or the lower level. So let's say the price is closer to higher level and having price right there on the pre-market. I'm gonna be waiting for the price to break and hold. Sometimes it might be happening when the price is breaking the level, not getting accepted, and then going down even further to the downside. So it's important to wait for the reaction when the price is touching, dipping slightly lower than the level, and then getting back above the level. It's creating some kind of a candle with wick below the level but the body above the level. So that is the moment when I identify my entry as close as possible to my level, a pixel below that as my stop loss. So that is going to be my risk with that.
