Market Rules EXPLAINED - How To Count Entries

learning to count entries is one of the most important skills a price action trader can possess and why is it so important well because market likes to moves in pairs of twos this is how market moves it is die down to human psychology and this two-legged move also known as a two-legged pullback creates a high probability setup two-legged move in other words second entry if we combine it with the proper key entry point is a high probability setup this is why counting entries is so crucial because we want to find the proper second entries under

the right circumstances so if we take a look the most recent price action we always take into consideration the most recent price action the most recent price action the structure is bullish we are above the exponential moving average and we are creating a consecutive higher highs and higher lows this is just clear uptrend so we are looking for reasons to go long we do not argue with the trend we're looking for reasons to go long so we're going to count from this high why why we are going to count from this high because this high

is the highest high of this entire move this eye is higher than this high is higher than this high and is higher than this high right here if i put this to the very right side of the chart this is what we would see and now it makes sense this is the highest high of the entire uptrend so when we're looking at the highest high this is where we start our count and we're looking to look for entries and entry is basically when the bar breaks the previous bar high just by one tick and don't

worry about this i will explain everything and show you guys example so we have a highest high right here and we have a first bearish move down second bearish move down third bearish move down and neither above none of these bars we triggered higher yet only right here we finally got a one thick trigger above this bearish bar above this bearish bar high on this bullish bar so first entry long triggered above this bar with this bullish bar so this would be high first entry long and prices continue working higher and we didn't have a

second entry why we don't have a second entry long here well because this high right here just broke the previous pivots high the previous swing high this high rate right now right here is higher than this high and it resets the count according to price action rules so we have to start counting entries over from this high right here so what do we have we have a bearish move down we have another bearish move down we have a bearish move down bearish move down bearish move down even though this is bullish we haven't triggered yet

one tick above neither one of these bars highs these are consecutive parts working lower and lower we are just breaking the lows but we are not breaking the highs so the first entry long hasn't even triggered yet we finally have a first entry long trigger one tick higher above this bullish bar right here so the first entry long trigger right here and the first entry long of the previous swing trigger above this bar right here with this bullet bar and we triggered here one tick above this bar on this bullish bar and notice we are

working higher we're working higher and what happened the same thing this high just broke the previous pivots high so i have to reset the count and start my count over again desire is higher than this high and this high so we have a move working lower working lower and we have a first entry about this bar this bar this doji looking bar just broke by one single tick above the previous bars high so this would be a first century long that failed because first entry is not a high probability setup remember price is making two

like a pullbacks the second entry is was high probability setup so we have a first century long that failed and then we have a second entry long that triggered one tick above this bullish bar i'm gonna show you once again this right here on this bar just broke one tick higher on this bar so this is a first century long pullback second entry long this is a high probability setup because it is a two legged move at the ema which is a key entry point and also there is a trend line we have a first

two swings confirm the trend line set up the trend line excuse me and third swing confirm the trend line so this is a high probability setup and price keeps making higher highs and what do we have here we're still in an uptrend so we're looking for more opportunities to go long we have a new high right here because this high right here and why this is a new high because we just created a high right here and we have a swing by one tick at least break below this bar right here if we didn't get

the trigger one tick lower below this bar right here there is no swing and we keep going higher we keep going higher so the pivot always happens when we have a bullish move and a bearish move right after this we have to trigger below this bar low for the pivot to establish okay so we have to start out our count over so what do we have we have a move and a first entry long triggered about this doji looking bar and what happened we have a double top right here and hold on here is a

special treat for you double tops and double bottoms reset the count so even though we have a first entry long right here we just created a double top to the very tick on this red bar so that means that we have to reset the count and start counting over and looking for entries from this bearish bar with the red body so this is a double top and we didn't create a move down we continue working higher but have we continued working lower we would have been counting from this this bar right here because the double

top and double bottom resets the count price keeps making highs and we're basically resetting the counts over and over and over again now this high right now is higher than all the previous bars high and we just broke one take below this this bar right here one take below so this is a new pivot if i take a look if we take a look on the right side of the chart this is the highest high of this entire uptrend so remember we are looking for this pattern two like a pullback at the key entry point

so we have a move down move down and the first entry long triggered above this bullish bar on the following bar this following bar just trigger one tick higher above this bar right here starting to get a little bit cluttered but don't worry it is not so hard hopefully it's the obvious first entry long because first entry is not high probability we have a three consecutive bearish bars working lower and here we have a first bullish bar and we still don't have a second entry long yet we're still working lower on this bar right here

that broke one tick higher above this bar this just created a second entry along right here pull back first century long pull back second entry long right here at the two key entry points very high probability setup resulted in winning trades so this is how you count entries in a trend specifically in an uptrend in this example if we break the previous pivots high you have to reset the count and start counting over now what we need to realize is that we always take into consideration the most recent price action because if we for example

take a look on yesterday's session and if you for example take a look at this high this high right here is clearly lower than these highs these highs right here than this high than this high but the uptrend started from this point on and we are always interested in the most recent price action otherwise we we would never get the proper count so the most recent price action where the trend is starting that's when we start counting and we pushed above the ema strongly so this is a good sign that the uptrend is starting and

we have a first entry the trigger one tick above this bullish bar this is the new high pullback first entry is working higher and there is no second entry because now we are working higher now we are working higher and we notice how we don't have a trigger one tick below neither of these bars so there is no pivot there is no swing the swing occurred right here because we just trigger one tick below the following bars low so we have a final pivot and finally we can start counting from this point on this is

the highest high because design is higher than this one and we have a just a first entry long trigger one tick higher above this bar i mean continue working higher new pivot right here and the first entry long percent wrong trigger higher so this is just a bunch of first entries now i mentioned that double tops and double bottoms reset the count and here is the example i'm just going to make it even more visible this eye right here is higher than all the previous swings this is the highest swing if you take a look

at the right side of the chart this is the highest swing now we have a bearish move down and we have a first entry long because this bullish bar triggered about this bearish bar high and thus created a perfect double top so i have to reset my count over because double tops and double bottoms reset the count so i'm starting to count from this bullish bar so we have a first entry long that triggered one tick above this bar on this bar this bar trigger one tick above this bar so create the first century long

now experienced price action trader can see that this is a two legged move and this is a hidden second entry long so i don't want you guys to be focusing on this just remember double taps and double bottoms reset the count but advanced trader can use his experience of studying the charts and can see that this is a two legged pullback and he can potentially treat it as a second entry if he deems so but the beginner trader only wants to focus on resetting the count same thing happened right here the price right now is

in and downtrend and this is the first bearish lag that we are working lower and this is the first swing so we're starting the count let's now talk about starting the count in a downtrend we're starting to count from this swing right here so prices are working higher and this would be just a first entry short because we triggered one tick below this bar right here let me make it better excuse me rectangle right here we just trigger one tick below this bar and created a first entry and there is no second entry because this

wing right here is lower than this swing we just broke this wing's low so we have to start out our count over if we are looking for reasons to go short this is the new low pull back first entry short and we are continuing working lower and here we have a pullback first entry short but what do we have we have a double bottom so we are starting the count over from this point on and remember this is a still downtrend and it remains to be a downtrend until the bar or the move breaks the

previous pivot's high this is because this move right here didn't broke didn't break this pivot's high so this is still downtrend this move up here didn't break this pivot's high so this is a still downtrend this move up higher didn't break this pivot's high so this is a still downtrend and if we count from the top this is a first century long pull back second in too long pull back third entry long pull back fourth entry long and on this fourth entry long we just broke the previous pivots high so the downtrend is over and

the bullish trend just started and since the bullish trend just started we're looking for second entry longs we're just pushed above the ema and this is the new this is the highest high right here this high is higher than this high it created the swing because we trigger one tick below this bar so this is the swing and we have a first entry long the trigger one tick above this bar push lower and a second entry long that triggered one tick above this bullish bar this is the first entry long right here and this is

the second entry long right here and you can see two bearish legs working lower first bearish lag first century long second bearish lag second entry long and we continue working higher and also since we are pushing above the ema this is just a little tip we can use this opportunity to look for second entry short failures because the downtrend played out and we know the overall bias is up and we know there are going to be people chat going short and since we have a double bottom right here and we have to reset the count

we have to start counting from this bullish bar let me just make it a little bit more clear we have a bullish bar right here we pushed above the ema and this is the first entry short pullback second entry short trigger bill of this bar so this is the first entry short pullback second entry short and it failed so this is a high probability setup we're looking for second entry longs with the trend at the key entry point and where we are we are in an uptrend we're looking for failed second entry shorts if we

were in a downtrend we would be looking for failed second entry longs that's a little bit too complicated and don't worry about this this lesson was only about how to count entries with the trend