A trader shows how to enter long positions using swing-failure setups. Wait for price to break below yesterday's low, then buy when a candle closes back above it. Place your stop just below the new low and target yesterday's high.
I typically have homework lessons for my students that basically wait for a rate of the previous day's high or low. And then when you get a closure back above that low— so let's say we have the daily low here and we get a run below that previous day's low. You're not going to do anything until we get a closure back above the low. Okay, so that's our swing failure. And then you're going to place a long position. Your stop loss is going to go below the newly created low, and then you might just target the previous day's high.
