Introduction
- In this post I will bring together two powerful concepts in price action – spikes and stop-entries.
- Combining these will lead to high-probability trading
- There are some earlier indicators and videos I recommend you watch prior to this one to give it context
Video
Prior Reading
- Identifying spikes
- Spike indicator for 3 consecutive bars
- Stop entry post
- Indicator for stop-entries
Video 1
Consecutive bars and the stop-order trade
- Drill Instructions
- Add spikes
- Add stop-entries
- Watch how the market respects that entry – test and second leg
- Find ones that fail and lead to opposite moves
- Find ones that fail and lead to tests and a secondary trade
- Example below:
- Add stop entries
- First good signal bar after spike
- Here alternating spikes until a good signal bar to enter got filled!
- Some patterns don’t show up until the end! Thats trading! Late legs…
- We test back to the original Low 1 sell! Interesting
When they fail they often become test targets
- See this chart
Countertrend again!
- Countertrend signals – best to leave and wait for a with-trend entry
- Look to MA for guidance also
- Wait for trend resumption to win
Conclusion
- This is a key skill to read price action and determine whether a trend or trading range is in effect
Zen Trading Tech 
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