what is going on traders in this video we're going to talk about how to buy the low but not just to how to buy it but how to buy it as a high probability setup because when i started trading i never believed to these traders they were reliably selling the highs and buying the lows with consistent results but after almost eight years of trading it has become one of my go-to setups and i think it would be a shame not to share with you guys so i'm gonna try to explain it to best of my
abilities and give you the tips what i'm looking for in the first part of the video we're going to explain the technical analysis aspect of this how we recognize this pattern in the second part of video i'm going to show you guys my live trade that i took right here that i attempted to buy the low so the first step is when we are picking the top or picking the bottom and more likely buying the bottom or selling the highs is that we need to identify the market structure because it needs to be trading range
it cannot be trend uptrend or downtrend when the market is trending we are obviously only sticking with the trend we don't want to be taking unnecessarily risk to be picking tops or bottoms we just want to buy ourselves the pullbacks and keep going with the flow so it has to be a trading range and it is pretty obvious when we first came in and looked at the chart market started with one big leg up we went into congestion fell break lower and prices attempted to make a new extreme as i came in this is still
pre-market open session as i came in price is pushed below ema and prices are continuing working lower so this is not a strong uptrend not a strong downtrend this is looking like a trading range structure the second step is that we need to make sure that the downtrend is going to finish is going to play out the current trend is going to finish and how do we recognize that the trend is finishing well we recognize it by the break of a trend line and a new low because after trend line will break traders will attempt
to make a new extreme we have a break right here and prices continue to make new extreme so as i came in we push below ema prices are working below ema and take a look how we keep breaking these lows each times every single structure low is being broken broken broken so this is a good sign that we are in a downtrend or we are heading into downtrend we have a break of this downtrend and you're most likely heading to these to this low this is the close for yesterday i mean the closer is that
it is a little bit higher but i put it a little bit lower because you can see multiple touches right here so we're most likely heading from one side of the trading range to the other side of the training range and the third step when we are buying the low is we prefer it to be a break below a key level because most breakouts of trading ranges will fail so it's not bad it's not wrong to buy the support but we want to buy it we want to fade the breakout we want to wait for
the break below the key level because that's the easiest way how traders can get trapped and now take a look at this pattern that i i'm going to try to describe to you when we are looking to buy the low like i already mentioned the price structure needs to be range we the downtrend need to finish and we need to break below the key level we have this strong bearish move down this is wanna see the stronger the move the better i know it sounds counterintuitive why would be you know wanting to buy after strong
bearish move but we wanted the stronger the move the better it is because most people are going to get trapped so what you're looking for is a strong bearish move followed by a depletion candle take a look at this doji this right here is a depletion of this entire move after that there will be an indecision phase decision phase is clearly highlighting that the market is depleting the previous strong bearish move this area right here is the indecision you guys can see how we're trying to go higher and we're trying to go lower it's no
longer a strong strong continuation of this bearish move and we are no longer going higher and breaking above so this is the indecision after depletion but more importantly here comes the most important part that i want you guys to pay attention to because the whole idea behind buying the low below the key level and fading the breakout is that we want to be on the other side of the traders of the beginner traders who are getting trapped because i guarantee you so many traders watch this entire downtrend working lower working lower and they were scared
to pull the trigger all the way up here and they're going to go short below the breakout after all that move happened they're going to be a lot of traders who are going to be piling in because it is a common sense market show you that is trending down now this is a common sense and you don't want to be following common sense when you're trading so market proven it's going down you have a new low right here this is the low for the day you have a first century short pullback second entry short this
is a trap because second entry is a high probability setup we're coming off to ema but remember we broke lower most breakouts will fail it is in decision area it is looking like a it started to like a bottoming pattern sort of felt like an entry and a nice bar to go long so this was my first entry for today and actually a very similar situation happened yesterday when i was filming the video is that we have this low right here for the day prices we're continuing broken lower we have a break and a new
low so the downtrend played out it is a trading range looking structure we broke below the key level we have a strong bearish move down we have a depletion candle oops we have a depletion candle right here a little bit of indecision i pulled the trigger way too early looking back in hindsight this is the trap i should have been waiting for first century short second entry short this would be the trap to trap all the shorts going short after all the move happened very similar pattern very high probability all these patterns will repeat this
was my first trade and as price is pushed above the ema and this key level is now holding as a support the ema is holding a potential trend line is holding and the support is right now holding so this was my second trade and i caught quite a nice runner right here unfortunately i got stopped out here but this is how i'm looking to buy these lows it is very counter intuitive and it is scary but when it's a trading range it is such a high probability setup because so many people are going to get
trapped down here you can almost rely on it and even though you're close to this ema right here the overall context is here so strong that you just have to pull the trigger right here and prices kept working unfortunately i don't see really good setups for today there is a second entry show right here but you're inside of this trend line another entry here but once again you're inside of this trend line so you don't want to risk taking this first entry right here then you're working higher uh here's the first century long pull back
second entry long but bar is way too big so only you you could enter on this inside bar it would be pretty great entry following our is a failed break lower in and up trend ema is holding but you know other than that once again not that many high high probability setups but i'm going to quit talking a gorgeous trade today and hopefully you guys are going to enjoy the live video take care everybody [Music] foreign [Music] so [Music] [Music] [Music] [Music] [Music] [Music] [Music] my
