Barky's Entry Concepts
The Complete Toolkit, using the entire course, all concepts and all models.
Here, on the other side of the courses, having worked through all the material and concepts, we have learned how different timeframes work together, we understand how to derive simple directional probability from the Anchor and Root timeframes, and we understand how the Diagonal Entry Model and the Continuation Model are related (same setup on lower and higher timeframe, EMA9/EMA50 parameters), and we can snipe, using Reversal Triggers for the most compact risk possible.
We have also learned how trend and expansion build on continuation of the underlying trend, and we understand that turns and reversals only initiate after continuation initially fails.
Through years of study, execution and fine tuning, my edge ultimately became the EMA9 parameter. No matter what the market is doing, price is always moving a few points up and down, and when you zoom in enough, you always find a timeframe where EMA9 is pushing or rejecting price. We call that the Leading Timeframe.
The Diagonal Entry Model is key to EMA9 continuation versus reversal, with the model setting up the same way across timeframes. For day trading, I designed a few combinations of the M2 and M10 timeframes for the M10 Entry Concepts, to exploit this relationship for high probability setups with sniper edges for super tight risk management.
The M10 Entry Concepts yield good results, but they don’t catch all trades. If we want to understand why not, this question brings us back to the concept of the Leading Timeframe and the necessity to zoom in and out to find the best timeframe to manage the setup at hand. After all, the leading timeframe has to initiate the reversal, and then the timeframe that sets up the reversal provides the EMA9 that has to lead price out of it.
This is how I discovered what we discussed earlier, that a Continuation Model on a lower timeframe is a classic Diagonal Entry Model on a higher timeframe. Later in the courses we will explore the EMA Dance and the RT Concepts (Reversal Triggers), and this same principle applies there too.
The inter timeframe relationships that I have found useful are as follows:
RT = Reversal Trigger, DEM = Diagonal Entry Model, CMOD = Continuation Model
Therefore if we find the following EMA9 setups, we can zoom in to find their EMA50 equivalents below:
M1 DEM = 15 seconds CMOD = M5 RT
M2 DEM = 30 seconds CMOD = M10 RT
M5 DEM = M1/M2 CMOD = H1 RT
M10 DEM = M2 CMOD = H1 RT
H1 DEM = M10 CMOD
Here is a simple example of an M5 DEM with and M2 CMOD. I have found that there is little difference between an M1 and and M2 CMOD, although when M5 is leading the M1 CMOD rejects at M1 EMA50 while the M2 CMOD reaches only the EMA34.
Interesting, right? If you look again, on the left hand side, you may recognise an M5 CMOD with an M5 EMA9 push to set up the breakdown. Entry concepts! When you have them in your tool kit, money is suddenly everywhere.
So a DEM = a CMOD. But a CMOD is not always a DEM. If we find an M10 CMOD, we can zoom out and we will find an H1 EMA9 consolidation, but not necessarily an H1 DEM. This is where zooming in and out becomes important. We will find M2 CMODs, but not all of them are M10 DEM’s, but all of them are M10 EMA9 consolidations. This makes sense, because a CMOD is essentially a setup to define risk and participate in continuation, while a DEM is essentially a reversal model to define risk into a failing EMA9 rejection.
When you understand this, zooming in and out gets an additional function. When looking at a CMOD, and EMA50 consolidation, you may zoom out to let the EMA9 consolidation tell you if you might be looking at failing EMA9 continuation and play for a reversal instead of continuation. Below is an example of that.