I am new to second entries. The more I stare at this chart, the more confused I get. I understand that when the candle ends lower it could be an entry short, and when the candle is higher than the prior, the candle prior would be the entry long. I attached a photo and where the arrows are, I am curious why those wouldn't be considered in the count? I have rewatched this particular part in the video so many times and am simply not grasping it.
Thank you
Second Entries
Second Entries
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Re: Second Entries
The purpose of counting is to measure attempts of reversing the primary direction. If the primary direction is downwards, then the next bar moving even farther downward, whether a bull or a bear bar is not relevant as it isn't a correction.
In a downtrend then, as prices move upward, the bar that moves below the previous bar in the upwards retracement is a count of 1. The 2nd movement lower, in the shorter term upwards retracement, in the longer term downtrend, is a 2ES (second entry short).
If in an upwards retracement the bar is a bear bar, but it doesn't move lower than previous bull bar, it is known as a "hidden" count. Initially, I would recommend not consuming yourself with this definition and stick with true counts until you have gathered more experience. This portion will then be obvious, whether one takes those counts or not.
Review the red counts for counts to go short (counting upwards from a lower low), and green counts for long potentials (counting downwards from a higher high) and hopefully it makes a little more sense.
Note, counting isn't an edge in and of itself. It is simply part of the measurement game.
Hopefully helpful and good trades to you!
In a downtrend then, as prices move upward, the bar that moves below the previous bar in the upwards retracement is a count of 1. The 2nd movement lower, in the shorter term upwards retracement, in the longer term downtrend, is a 2ES (second entry short).
If in an upwards retracement the bar is a bear bar, but it doesn't move lower than previous bull bar, it is known as a "hidden" count. Initially, I would recommend not consuming yourself with this definition and stick with true counts until you have gathered more experience. This portion will then be obvious, whether one takes those counts or not.
Review the red counts for counts to go short (counting upwards from a lower low), and green counts for long potentials (counting downwards from a higher high) and hopefully it makes a little more sense.
Note, counting isn't an edge in and of itself. It is simply part of the measurement game.
Hopefully helpful and good trades to you!
Re: Second Entries
Thank you for your response. It's starting to make a lot more sense now. I do have a few questions again after going through the video again. I appreciate the help! The questions are on the photo I attached.
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Re: Second Entries
Nice work. You have grasped the critical aspects of the concepts. Answers in red within graphic. Good trades to you.
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Re: Second Entries
Thanks Eric for the help! I appreciate it