This Entry Model Can Transform Your Trading📈 – Live Room Secrets🤐 Inside

Well, that’s where our entry model comes in. Okay? We need to see very specific things in our entry model. I’m going to leave this up here and explain below. Okay, so our entry model—first, the thing we need to look for is that price must deliver from a fair value gap. Price needs to deliver from it. That’s step one: deliver from a fair value gap. Okay? And it has to be on the time frame you’re executing on. So, let’s say the higher time frame dipped into a 15-minute fair value gap. Now we’re on a 1-minute chart. We need to look for a 1-minute fair value gap to dip into. So, we need to deliver from a fair value gap.

Now, once we deliver from that fair value gap, we have to take some type of internal liquidity. I don’t need that box—we just have to take some type of internal liquidity. That would be taking out these two areas right here. These are internal liquidity levels—inducement levels—that are generated right before the fair value gap. When price breaks those into the fair value gap, that’s grabbing internal liquidity. That’s an absolute must. Now, this could be generated liquidity, or it could just be a previous high or low, like yesterday’s high or low, or the day before’s high or low, or session highs or lows. It could be any high or low. But it has to grab some type of internal liquidity; otherwise, it’s no good.

When price grabs that liquidity, it needs to create a fair value gap. So, let’s pretend that this move here created a fair value gap to the downside. Next, we need to have SMT. In this case, if we’re trading the NQ, it’s going to be with the ES, but SMT has to be with any correlated asset—ES/NQ, GBP/USD, EUR/USD, AUD/JPY, NZD/JPY, GBP/JPY, EUR/JPY.

Clemens, this is all recorded, so you can take a screenshot or just go into the recording and grab it. I don’t post screenshots of this. Everything is recorded, so you can get it there. We need an SMT with the S. I’ll go over more on SMT after. After that, the fair value gap needs to inverse—meaning price has to move right back above and close above. So, it needs to inverse and close above.

We have to have clear targets—meaning levels up here, and clear targets of highs and lows above. That is the basis of our entry model. When we see this, then we know to act.

So, if we go into the charts—this is actually just a look here, and let’s assume there’s SMT here—this is kind of what it would look like. Let’s say we already took out some type of major liquidity. We have a fair value gap here on our chart. Price dips into the fair value gap and takes out internal liquidity right here. Remember, this is what we were looking at—oh, actually it’s on another chart, but just keep in mind what we’re looking at.

We have engineered liquidity, a fair value gap, and then another engineered liquidity level. We create a fair value gap coming into the fair value gap that we’re delivering from. Then we inverse this fair value gap with momentum and close above it. We want to trade from internal to an external level, which is going to be right up here—that’s the first external level. Now, there are multiple external levels, because everything above here can also be external levels and targets to use if we feel we’re going to get there. But the first internal target is always going to be the main target.

The way we trade this is very simple. There’s nothing subjective here. As soon as price closes above, you market order. You don’t wait for any retrace or anything else to happen. You market order and target that external liquidity. Your stop is going to be just below the fair value gap and the bodies of the candles—not below the low, but below the bodies. As you can see, this resulted in a 2.5 to 1 risk-to-reward trade.

The other thing we would have had is SMT with the ES—meaning, ES on the same time frame right here broke the lows. Now, it didn’t in this case; I’m just saying it did for illustration purposes. ES broke this low where NQ did not, creating a Kraken correlation, which is a cheat code for us to trade in that direction.

That is our entry model. This is what we need to see. When price comes into a higher time frame level, that execution and pattern need to be “light bulb.” What do I mean by “light bulb”? If I were to blow this up right here and walk across the room and look at it, I should still be able to see this as an A+ setup. I can see the liquidity taken. I can see price coming into that fair value gap. I can see the momentum of the inversion. It has to be light bulb. If it’s not light bulb, don’t take it.

That is our entry model. I’m going to go back to the entry model again right here. And that’s it—that’s the checklist. So, when you’re trading and entering a trade, and let’s say you already have the bias from the higher time frame, this is the checklist you’re going to use:

Am I delivering from a fair value gap? Meaning, am I coming from a fair value gap? Is price bouncing off or rejecting from a fair value gap?

Are we grabbing some sort of internal liquidity—either recent highs or lows before we hit that, or maybe a recent pivot high or low like we just saw? It needs to create a fair value gap.

It needs to have SMT with the S. One has to break lower, the other makes a higher low—that’s a Kraken correlation.

Inverse the fair value gap with a close above. Inverse the fair value gap—meaning it closed above with momentum.

Last part—clear targets. We have a clear target of an external high right here. And then, if we wanted to hold runners, we have all these targets up here.

This is how we trade every day. This is what I go over in all the market preview/review videos. This is what we go over in every session. It is absolutely vital that you understand and know how to execute this.

Hey everyone, it’s Dale here. I hope you enjoyed the video. If you’d like to trade alongside me and our team of prop firm funded traders every day, then click the link below the video and hop aboard. We look forward to trading with you.