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Alright guys and now we're back
at it for the confirmation

entry. This is the second video
of the three part series for

entry types. So let's dive into
what exactly a confirmation

entry is and how we can utilize
it in our trading and as well

as the benefits of it compared
to a risk entry. So the

confirmation entry is basically
a fractal version of the risk

entry. Locating the initial
entry criteria repeated on a

lower time frame to confirm the
validity of the point of

interest or order block. So
fractal basically means the

same pattern but on a smaller
scale. Okay so what that mean

is if I find a break of
structure and a retracement

break of structure retracement
auto block mitigation on a

higher time frame such as the 1
hour or the four hour the

confirmation entry is simply
finding that exact same pattern

but in a fractal version so on
the one minute or the 5 minute

preferably okay so as you can
see here this is the the same

diagram that we used in the
risk entry lesson but in this

scenario I just have an arrow
pointing to the higher time

frame POI explaining that
zoomed in on a one minute or

five minute time frame you'd be
looking for this exact same

thing. So basically we tap into
the higher time frame POI which

is right here. We then create a
smaller break of structure. A

small solidified high. Another
solidified low breaking

structure once again. Let me
just

annotate that so that line
there is the the fractal break

of structure right so we tap
into the POI the higher time

frame POI and then we start to
create that same pattern once

again and as soon as that small
break of structure happens on

the 1minute or five minute you
then look for a lower time

frame POI okay or order block
so what was the point of origin

for that minor break of
structure okay so we locate

that the point of origin and
then we simply set our order

for the retracement and
mitigation of that okay it's

very simple now what are the
benefits of using confirmation

entries well they're useful if
you are questioning the

validity of your order block or
POI right so if price is is

headed towards your POI very
aggressively maybe not in a

corrective manner and you're
not sure if it's going to hold

or not and you're too weary to
use a risk entry then this is

where the confirmation entry
comes in handy because you can

wait for price to tap into the
higher time frame POI and then

instead of hoping that it
holds, you can go to the lower

time frames and look for
confirmation that it is

holding, okay? So, if you see
this fractal pattern on the

lower time frames, that's a
confirmation that the order

block was valid to begin with
and your analysis was correct

and then, you can start looking
for entries, right? So, number

two here, if you have time to
be on the charts, you can have

a safer, more calculated entry,
okay? So the risk entry

benefits were that or one of
them at least was that you

don't have to be on the charts
all the time. Um if you have a

busy lifestyle or if you work a
nine to five job you can set

and forget your trades right?
But if you do have the time if

you have the luxury of being
able to sit on your charts at

your desired trading session
and truly wait for the best

opportunities. Then that's
where mastering confirmation

entries can really level up
your trading. Okay. So number

three can achieve tighter risk
reward by utilizing the lower

time frame structures and what
this means basically is that

for example if you were to set
a risk entry here on the higher

time frame POI set your stop
loss just above it

let's say you're you know
you're left with about seven R

for your potential position
well if you utilize the lower

time frame structure and look
for this fractal pattern then

your entry is going to be much
much tighter so technically you

will be a little further away
from the initial point of

interest maybe down here or
something but your stop loss

instead of for example like
five or six pips could be one

to two pips actually so even
though you're a little further

down you can achieve a much
much higher risk reward ratio

and that's why when you see
mastering the confirmation

entry sometimes they walk away
with 20 R trades, 30 R trades,

40 R trades, sometimes even
upwards to 100 R trades which

most people think is impossible
but once you really master this

technique anything is possible.
So those are the basic benefits

of confirmation entries. Now
let's go over how to best

utilize the confirmation
entries. So basically you

patiently wait for price to
enter your POI as I already

explained right? You sit and
wait for price to tap into your

higher time frame POI, okay?
Now, once that happens, this is

where we head to number two,
okay? So, the first break of

structure represents the best
risk reward ratio but waiting

for the second break of
structure is a safer trade,

okay? So, what do I mean by
that? Well, if we look at our

zoomed in diagram here, we
first tap into the POI, we

trade away from it, we retest
or sorry, we we create a new

solidified high, we then bray
that structure of the previous

solidified low right we break
the structure creating a new

low and then we enter off of
this right here so this is

technically the first
confirmation this is the first

break of structure that occurs
and we are entering our trade

based on the first lower time
frame order block that we can

find okay the point of origin
for the first break of

structure now what that
triggers is a second break of

structure right there so if you
want a safer option and you're

really patient okay this
requires a lot of patience

because sometimes it won't
always play out like this but

if you have the patience then
you can wait for the second

confirmation alright so upon
this break of structure there

is of course a point of origin
for it let me hide this for a

second whenever there's a break
of structure there is a point

of origin okay so we have to
locate that and so that zone

there the second point of
origin would be our second

confirmation right that would
be the the confirmation entry

in its final form basically so
there's the first confirmation

and the second confirmation the
first will represent the

greatest risk to reward right
because both both zones are

going to represent basically
the same stop loss size roughly

so your stop loss size will be
about the same but the first

one is of course you know
closer to recent price the

further down you get you know
your targets are going to have

to be basically the the overall
risk reward is going to be

vastly different right so the
the higher you get in in a sell

position the better okay so
like I said the first break of

structure presents the best
risk reward but waiting for the

second break of structure is a
safer trade it's just added

confirmation right the more
confirmation we have the better

it gets now if you just sit on
your hands too much and you're

just waiting and waiting and
waiting for the third confirm

fourth confirmation then
eventually the move is going to

exhaust itself and you're not
going to have there's not be

enough selling pressure left to
to reach your take profit,

right? So, you do want to pull
the trigger. You want to

execute on either the first or
second confirmation, alright?

Now, number three, this one's
really important. So, don't be

greedy with your stop loss
size, alright? If you see

somebody on social media or
something flexing that they got

in with a half a pip stop loss
or a one pip stop loss, just

don't pay any attention to it.
It's completely unnecessary.

It's incredibly risky. Um
especially with with spreads to

do with your brokers like you
don't want to have that type of

a stop loss. It's just
unnecessary. Uh it's it's just

ridiculous. In my opinion. So
for me personally a three pip

minimum is a good rule of
thumb. Um sometimes I go to two

to two and a half pips. It
really depends on the

situation. Um especially for
pairs like Euro USD and AUD

USD. Those have really good
spreads. So it's easy to get

away with two to two and a half
pips. But just as a general

rule of thumb a three pip
minimum is good. Okay. Um and

the next thing I want to
mention is it's really

important to check the highest
time frame that like the next

highest time frame to ensure
your stop loss is not too

tight. So that means if we're
on the one minute time frame

and we're setting our entry
parameters. Just before you do

so maybe check the five minute
time frame and just make sure

that you're not ignoring some
sort of actual important

structure. Okay. I've done this
in the past two and I still

make that mistake from time to
time. I'll set my you know two

to three pips stop loss on the
one minute time frame. Not

realizing that there's a you
know an area of supplier demand

that needs to be tapped into on
maybe the 5 minute or even the

15 minutes sometimes and I'll
get stopped out just for price

to go in my favor anyway so
can't be too you can't be too

greedy with stuff like that
okay so three pip minimum is

very good and yeah that's about
it so that sums up what I have

annotated here in this diagram
now I'd like to move on to an

actual chart example okay so
we're on Euro USD on the one

hour time frame let me find
where I was at okay so here we

go so clear bearish order flow
we're in a downtrend and we

have a very recent break of
structure a very clear break of

structure right this was a
solidified low solidified high

price push right through that
previous low to create a new

low so that's where our break
of structure is formed so once

we have that break of structure
mapped out we locate the point

of origin in this case I've
already done so it's again

we're on the one hour time
frame so this is a 1 hour order

block this candle right here is
the point of origin that is the

last point in time where buying
pressure was valid prior to the

bearish sentiment taking over
so that's the order block or

point of interest we're now
waiting for price to reach that

point of interest and instead
of taking a risk entry like

this where your stop loss would
have to be you know at least

ten pips

So instead of taking a risk
entry like that what we're

going to do is try and achieve
a better risk reward and a

safer trade on the lower time
frame such as the one minute or

the 5 minute. So let's see what
happens here. Let's play price

forward. Okay so we tap in
right there now this would be

scary if it was a risk entry
okay if you had a risk entry

placed here whether it works
out or not in the long run this

is intimidating like I said in
the last video that's kind of

like stepping in front of a
moving train right this is a

huge momentum candle to the
upside so it wouldn't be very

smart or wise to place a sell
limit order here and hope for

the best right because there's
no telling if price is going to

respect this supply right? This
order block and continue to the

downside or if demand is
going to take control and just

push right through this and
head towards clearing liquidity

somewhere else, okay? So
there's really no telling

what's going to happen and
that's when we can start

utilizing the confirmation
entry. So let's do just that.

Let's drop to the let's drop to
the five minute time frame. Uh

now I don't always go
immediately right down to the 1

minute. If the five minute
gives me the information that I

desire then I will stay on the
five minute time frame. So as

you can see we are tapped in to
our higher timeframe 1 hour

order block okay it looks like
we've actually mitigated 50% of

it as well so that's a good
sign now let's see what happens

so actually before I dive into
seeing what happens it's

important to note we had a high
right here this is a solidified

low we've now created a new
high okay so the confirmation

entry would begin if we can see
a clear break of structure of

this low I know it might be
hard to see but that's only

because this candle was so
impulsive and filled with so

much momentum that you know we
don't have the typical like

diagonal movement that we see
in the market this was just

such a high momentum candle but
regardless we made a high here

and then price came back down
to create this low so that is a

high and a low alright so we're
looking for this level to be

broken. Let's continue to play
Price Forward and see how this

plays out. Okay? So, that's a
break of structure.

Quite impossibly. Didn't
continue very far but it's

still broke and closed with a
full body candle.

So that's our break of
structure. And that would be

the first break of structure
right? So if you really wanted

to you could target the point
of origin which was here okay

so if we were to get an entry
here we'd have a very tight

stop loss just above that wick
to be safe which allows us a

three pip stop loss which is my
minimum and then we could

target recent lows for just
over 38 pips that would give us

just under 13 R okay, so that's
fantastic risk to reward now

here's the thing I mentioned
previously the second break of

structure would be the safer
bet right the first break of

structure can achieve you the
best risk reward like 13% if

you're risking 1% that's
fantastic but it's a little bit

riskier and also one of the
things to keep in mind is that

often times it will not even be
triggered right so Sometimes

you set a limit here for the
first break of structure and

price never makes it there.
Okay so the the second one is

definitely a safer bet but it's
always good to be aware of the

first one and get in if you can
and maybe since it is a little

bit higher risk of the first
break of structure you could

use half a percent capital risk
instead of the full 1% that I

recommend right so that would
be a good way to mitigate the

risk a little more but As you
can see, this is fantastic risk

reward ratio. Let's see if it
gets triggered in.

Nope. So because of this this
is another break of structure

right? So that kind of
invalidates this whole order.

Because we have after this
break of structure we had a new

solidified low. We had a new
high. Now we broke that

structure to create a new low.
So like I said that kind of

invalidates this now but we can
still leave it there just in

case. But let's go ahead and
map this out too. As a break of

structure because it is valid.
Okay so I'm going to hide this

for a second. I'll hide the
parameters but I'll keep the

Fibonacci tool up here just to
represent that that is still a

potential entry. Okay? But now
the new potential entry would

be this small indecisional
bearish candle okay that would

be the second confirmation of
the confirmation entry okay

that is like the complete
structure of the confirmation

entry because we had a clear
break of structure with an

impulsive candle okay so we now
have two breaks of structure so

this is less risky than just
the first break of structure

however there is something to
keep in mind this level here

could be used as basically a
liquidity grab or inducement

right we could induce traders
into believing this is valid

just to push higher clear any
liquidity from resting orders

just to trigger this entry and
then fall from that point on so

it could be used as inducement
that's something to consider

for sure and another reason to
potentially risk half a percent

instead of 1% if you're unsure
okay if you're fully confident

go for the 1% if you any doubts
whatsoever go for half a

percent it can't hurt so this
would be the second

confirmation entry so let's see
how that goes I'm going to set

parameters for here as well at
the 50% mark because that gives

us a better risk reward ratio
we could go two and a/ 2

percent sorry two and a half
pips here that still leaves us

some room above this little
range and if we target recent

lows that gives us almost 11%
so you'll notice now the first

parameters were about 13 R and
this is just under 11 R okay so

there is a big difference there
like I said in the in the tips

up here somewhere okay never
mind I'm not going to find that

right now anyways I mentioned
in the in the text up there

that the first one would give
you the better risk reward

ratio but the second one would
be safer okay so you can see

that it was just under 13R this
one is just under 11 R so big

difference let's play price
forward and see what happens

let's see if we get triggered
into this trade so we're still

pushing lower still pushing
lower now I'm not going to like

I said I'm not going to go for
the third confirmation fourth

confirmation fifth confirmation
because then it's just getting

very tricky right and you're
almost certainly going to get

induced into the wrong trade if
you're chasing that so I stick

to the first and second
confirmation I'm not going to

go much further than that so so
no I wouldn't be targeting this

as an order block even though I
broke structure here that is a

valid break of structure but
you know I'm not going to be

targeting this as an order
block it's too close to my

actual point of interest and we
still have this point of

interest up here okay so let's
play price forward

Do we get tapped in? It's
getting close. Okay, there we

go. Oops. There we go. So,
let's adjust this. Okay, so now

we're triggered into this
trade, right? Price reached the

50% of our order block. This is
a full confirmation entry in

effect, okay? We've had the
first break of structure. Price

has not reached the first order
block that caused that first

break of structure but we
created another clear break of

structure and we're now
targeting that order block and

we have just been triggered
into the 50% of that order

block, okay? So, let's play it
forward and see how this one

goes. Now remember before I
play it forward too much what

we're looking for to gauge the
health of this trade is another

break of structure right here.
Okay so if price can show me

that it has enough selling
power to break through that

level then this one's basically
a wrap you know like that shows

the health of the trade. So
let's see if we can achieve a

break of structure again. Now
that we're triggered in.

Looking good so far. Little bit
of a pullback.

Okay. There we go. So actually
a minor break of structure

here. Showing intent.

Right? It's showing bearish
intent. But then we have our

proper break of structure.
Right here so at this point my

stop loss would almost
certainly be moved to at least

break even but most likely a
little bit in profit because

this is our new high okay this
candle represents our new high

so my stop loss could
comfortably be just above that

high and you know at this point
what is it like yeah it's like

six and a half R floating
floating profit so at that

point I would more than likely
remove 50% of my position or

maybe not 50%, but a a good
amount just to secure profit

and again moving my stop loss
to a little bit in profit as

well so that if price decides
to reverse and trigger my stop

loss I still walk away with a
win but regardless let's see

how this goes

Just barely missed. He's
going to

Let's pick up the pace here.

I mean I assume that would have
been full take profit like I

didn't set these parameters too
carefully but let's see if it

fully goes through

okay anyways let's just drag it
on anyways I hit the take

profit I set this very
arbitrarily typically I rounded

anyways to to zero but anyways
that's almost an 11 hour trade

and that's a pretty great
example of the confirmation

entry right we had the first
break of structure price never

made it to the point of
interest that caused or sorry

the point of origin that caused
that break of structure and

that's okay I would have
certainly had an order set here

and you know once whole thing
took place I would have just

deleted the first order so it's
no big deal so again once the

second break of structure
occurred we located our order

block that was responsible for
it we set an entry at the 50%

of that order block because
that gives us a better risk

toward ratio obviously rather
than entering at the at the low

we entered at the 50% okay
price tapped in beautifully

basically no draw down
whatsoever just little wicks

tapping into it and then it
took off from there we had a

minor break of structure
showing bearish intent in the

market and then we had a full
proper break of structure of

the most recent solidified low
and then it just took off

towards the take profit from
there. So really overall a

beautiful trade and a perfect
representation of the

confirmation entry. So I hope
you guys enjoyed this. Uh let

me know if you have any
questions. I'm always happy to

help and stay tuned for the
next one.