In this section, I'll be explaining trade entry techniques and life after the scoring table.

Introducing
something like the scoring table is the best way to illustrate why a particular area is considered a good
trading location, including a number of different probability enhancers and filters. Therefore, by taking
you through a systematic approach where you have to use a step-by-step checklist, and then to obtain a
score off of which you will then make the final definitive choice between only two alternatives taken a
trade or not taken a trade is actually known as the binary decision. Without this tweak to your trading
brain experience, you won't be able to move on to the next step, which is if-else conditional logic
required in the more advanced stages of your trader development. But there is a life after the scoring
table and a more efficient use of developing price action instead of just using limit orders. So let's take a
look.
Let me begin by saying that the scoring table from the first part to the first section of Mastering Supply
and Demand is an educational tool first and foremost. Now, once it becomes second nature for you to
look for possible issues when it comes to the opposing zones and higher timeframes, you know, all of
the stuff that you have in the scoring table, such as making sure that the arrival is clean, that there is
sufficient space between your entry and your target, and all of that good stuff, you can then begin to
use supply and demand in combination with developing price action on much smaller timeframes. So
now instead of using just limit orders, there is an option to wait until the developing price action shows
you the way. And this approach will also mean that I'm going to show you how to use a lower timeframe
such as one hour and 30-minute charts to possibly minimize the stop loss that's necessary to trade a
large zone from that higher timeframe.
scoring table If you remember, it calls for limit orders on the levels that scored high enough. Now, one
problem that I started to have when I was developing my own trading style was that sometimes I would
see a zone at a swing extreme, but it wouldn't score very well. And yet in the aftermath, the zone would
end up being reactive. This was the case with a lot of offspring zones in particular. So I started to have a
bit of a dislike for limit orders because even with the scoring table, it still felt a little bit like guesswork
because you're kind of guessing that a limit order might work out. Whenever I managed to find another
way of doing something more efficiently in trading, it would always start with this little niggling feeling
that there could be a better way, which kind of leads to a lot of research, a lot of journaling, and then
eventually I find a way how to do it.

Now at the time, when this was happening in my head, I was also a very new prop trader attempting to
translate this swing strategy of supply and demand into intraday. And I'll be honest with you, I was not
doing particularly well at that point. My stop losses were way too big, and the limit orders that would
trigger would have to be closed by the end of the day. So I would close the trade and then come back
the next day to try and find another entry, but usually, the price would move away from my initial
desired entry price. So now it would require an even larger stop loss. The limit orders were actually
working against me.
At the time I knew nothing about market profile and it's not going to be another probably another two
years before I learned how to use profile with supply and demand to serve my purpose.

But I did notice instinctually that using a 30-minute candlestick pattern at a larger supply or demand
area would actually show me the rejection quite accurately, particularly at the right time of day. And
then I also noticed that I could base my stop-loss on these 30-minute patterns rather than the entire
enormous zone from like a four-hour daily chart.

Another tool that I started to find incredibly useful during the later part of the day is the average daily
range. In particular, average daily range exhaustions, what average daily range does it take the daily
price movements from the last 20 trading days and then it calculates the mean average that becomes
your expected average movement on a day-to-day basis. Even if you're not interested in trading intraday
using ADR to time, your trades can be a big advantage when it comes to entering swing positions and
this is where Blatech ADR can help massively, Blatech ADR stands for Blatech Daily Range and I'll pop the
link in the resources section somewhere so you can check it out if you wish.

Now Blatech ADR is the very first ADR tool that shows you where the exhaustion range lines are and
then if the price reaches the lines, they will turn from dotted into dashed. You should think about ADR
exhaustion as your intraday swing extreme. So you can imagine if you start to combine this statistical
tool with something like a four-hour or a daily supply-demand area to get a very accurate idea of where
your strong trade location can be. However, ADR exhaustion can really only be efficiently used during
the New York session. For one very simple reason, Asia and London moves happen very early in the day.
So any exhaustion of a statistical norm, which is what the average daily range is, it means that you're
likely looking at an abnormal day. So price shouldn't exhaust the entire 24-hour range in the first two
hours of London trading.

If you're planning to continue learning with us with Market Stalkers and Blatech, to learn intraday
trading, then there will be talk about session ranges as well and how you can further utilize those kinds
of statistics if you're trading Asia or London.

Let's start with the topics that you're already familiar with because average range exhaustion is a pretty
simple concept. You would aim to get your entry as close as possible to the daily range extreme in the
top-down approach lesson I was talking about using weekly conterminous lines from just a mere
engulfing pattern, not even a supply-demand area. And that is certainly one choice to have in your
trading weaponry. Should you happen to run into a conterminous line on a weekly or even a monthly
chart, your first step would be to identify the weekly or monthly conterminous line, which indeed can be
in the middle of nowhere because it's such a large timeframe.

Then you'd combine this with a Q point from a daily or even a four-hour chart to look for your entries
either by locating supply and demand on that timeframe or by reading developing price action. So the
principle here is very similar.

This next option involves using a daily supply-demand zone located at a swing extreme. So ideally, you
do need a Q point on the daily as well, but there are times when the price has rejected a daily Q point
via a rejection pattern of some sort, which gives you a brand new contaminants line for a bounce trade.
For example, here there is a test of an older daily Q high that came from like way back, but the point
being is that one of the candles actually leaves the Q point area and I've marked it in this kind of yellow
orangey rectangle.

Now this event is your developing price action rejection signal. It's a reversal signal, right? And one that
leaves a Q point area as well. Now if you've trained your eye to look for these newly formed
conterminous lines already, you will notice that there are really two conterminous lines created. One up
here where the red line originates and then another lower one right at the daily Q high. Now the
problem with supply-demand limit orders is that one originates in supply where you're actually seeing
this, this whole sliding consolidation pattern is actually massive. Like if you look on the daily chart, it
spanned 340 pips. So what are you gonna do? Place a limit order with 340 pip stop? No thanks. I would
like to make some profits before dementia sets in. And then two, the newly formed supply actually looks
pretty weak and it's so new that it doesn't yet satisfy the three to five times profit margin either.

This price action here seems like it's almost suspended in air if you're not referencing that larger
timeframe contaminate line. And then three, you have no idea which one of these new conterminous
lines might end up being reactive. Then four, you still need a massive stop loss even if you were to trade
these contaminant lines. So okay, it might not be 340 pips but it might still be over a hundred pips. It's
still too much. But now you know about the market structures and you know about phase three and you
know that phase three is almost always followed by liquidation, but supply and demand says no. So let's
approach this another way. Mark both of the contaminants lines on the daily chart and you will see me
do something like this in my weekly YouTube videos. And by doing that, you now know in which areas
you want to become a seller based on this developing price action you're seeing on the daily chart like
this.

So now you have two conterminous lines. Remember we're kind of looking after this candle dropped out
of the daily Q point. So we don't know which of these is going to end up reactive. If you've subscribed to
our YouTube channel, if you just type in Market Stalkers on YouTube, it should come up. You'll see me
do these kinds of lines in orange rectangles frequently in the weekly strategy videos. But now that you
have these two contaminants lines, let's imagine that this whole move away didn't happen yet.

So now all that you can see is just this starting from this top you have the bearish engulfing, then you
have a test rather deep test of the newly formed conterminous line that doesn't lead the Q point area
yet, but the very next candle brings the move that we're looking for. It takes the price out of the daily Q
point quite confidently, but now it creates another conterminus line which is awesome for us.

Either of these lines may be the one that actually brings you that bounce in the opposing direction. You
don't know which one, it's the uncertainty of the market. You don't even know whether there was
maybe an intraday reaction from this very first line. You cannot see that on a large chart because you're
only looking at the daily chart. So whatever happened in today, it's not going to be visible in most cases.
And as you will see, you don't actually need to guess which one of these is going to work out because
you will be able to see this on a lower timeframe and there will always be a price action clue. So now
what I'm going to do, I'm going to take you all the way down to the 30-minute chart, still keeping these
red lines and the orange rectangle for orientation.
So here's what that 30-minute chart looks like.

I've zoomed out quite a bit so that you get the full picture, but here is this first conterminous line and
then there's the second conterminous line. The vertical green line is there to mark the beginning of the
next day. But I will say this, using low in-date timeframe levels and price action will only be relevant for
that day. Just like you wouldn't use average daily range price levels from like five, six days ago because
they're not relevant for today's trading. In the same way, you cannot look at a 30-minute chart supply-
demand levels that have happened several days ago because there are different circumstances, right?
There are different players and ultimately you do want to make this a hard rule if you're trading from
low timeframe levels created on a four-hour chart and lower timeframes are only ever valid for a
maximum of 24 hours if you're trading from 15 minutes, 30 minutes, and one hour.

These are only actually valid for maybe a couple of sessions. So let's say up to 12 hours. As a long-term
trader, I can tell you that low timeframes are only ever useful for developing price action expecting a 30-
minute chart supply-demand areas to work out just like they work out on larger timeframes. It's just
asking for it. And if you're wondering why this is, it's because there's simply not enough trading
information on those low timeframes to justify any long-term swing moves from there. And this is why I
see people constantly getting stopped out when taking trades from previously established 30-minute
levels. This is a favorite pastime of market makers to take out the recent highs and lows from these
immediate areas. If there is an established London session low, it is very likely that the New York market
makers will smash right through that low just enough to annoy the retail traders before taking the price
back the other way at the correct time of day.
So back to this shot. Now, the vertical green line, like I said, it marks the start of the next day. At this
point of the course, I do expect you to already know your candlestick patterns such as bullish engulfing
sidebars, morning and evening stars, and all of that good stuff. If you're a bit shady on these, I do have a
candlestick workshop as well. It's only short, it's on Udemy so you can go ahead and watch that. It'll only
take up about an hour and a half of your time for this course. I did specify that you need to be very good
at reading candlestick patterns and here's why. Once the price reaches one of these lines, you'll be
looking for a rejection candlestick pattern and not a bazillion candlestick patterns available out there on
the internet, but you're really only looking for four of them.

Engulfing consolidation, ideally ending with engulfing evening star or Morningstar. In this case, I'm
expecting a bearish rejection so it would be an evening star. And finally an inside bar. They are in order
of probability. So in golfing has the highest probability of working out, then the consolidation, then the
evening star and then the inside bar is the shadiest of those because it can turn into a consolidation.
Now I'm going to push the block time machine forward and then zoom in a bit.

Okay, so the prices reach the first terminus line. Remember this is a 30-minute chart, right? You can see
it here. So for any decision, you will need a minimum of two candles before you know whether you have
a trade entry or not. I usually have alerts set at these continuous lines. So I don't just sit there waiting for
the price to reach reach contaminants lines for hours and days on end.

I just set an alert, I walk away when the alert triggers, it sends me a text message to my phone so I can
then go to my trading desk or log into it remotely if I'm away from my trading desk and watch the price
for the next hour, maybe a couple of hours. Once you have that alert, you want to see one of those four
patterns that I just mentioned. And remember, you still don't know which terminus line will be reactive,
which is why I'm down to the 30-minute chart, attempting to use that 30-minute pattern for my smaller
stop-loss. And therefore you will also have a shorter trade duration expectation because you don't have
to hold it for days on end. You're not looking for a 300-pip move. You will only typically be looking to
bank about 80 to a hundred pips.

So let's push this along just one more bar. So now I have an inside bar. It's not the strongest signal; an
engulfing would be a better option. I'm not that crazy about trading inside bars, if I'm going to be
honest. More often than not on the low timeframes, they tend to turn into consolidating moves. In this
case, you would have a bit of a flimsy entry at that first terminus line from the daily chart.

So let's see what followed. It actually brought a nice pullback in today, but it wouldn't have been the
biggest trade. I mean if you entered this on the back of the inside bar, you would probably bank about
1.5 times the reward-risk ratio and then the next session already kicked in. If you're trading in today,
whenever the next session kicks in, I cut my intraday trades off. I don't hold them over the next session.
So if I traded London session, the trade will be already over by London noon if I traded New York. The
trade is usually cut at New York close sometimes even before that, a couple of hours before the New
York close. There are loads of traders out there who never make the distinction between the rules for
doing an intraday trade and the rules on doing a swing trade stop loss size being one major rule. For a
swing, you generally need a much larger stop-loss. If you want the trade to survive for longer than one
session. Using a 20-pip stop and then expecting that this will be enough to survive from more than a few
hours is just not very realistic. If you are using a small stop-loss and planning to keep a trade longer than
a day, you really need that large move away from your entry on the day of trade execution. So you need
that move that holds higher or lower on the day as you go into the close of the day. In that case, you
might be able to keep this trade overnight, otherwise, you're just playing with fire. Especially if you are
trading something that tends to gap and closes overnight such as DAX and natural gas. Natural gas is
actually known as the widow maker because of this. 'Cause it has these enormous gaps and you never
know what's going to happen. So trading it from like a swing is just not an option. The first thing is that
the entry signal that you're looking for, for a swing trade or potential swing trade, it needs to be much
stronger than just an inside bar. So for this example, it might be suitable for like a quick opportunistic
trade and it will maybe last for about two to three hours at most. But this is not, you know, this inside
bar is not the signal that you'll be looking for. And then also this particular move happened way too
early in the day. It was still the London session. I avoid doing any swing trade entries during the London
session because more often than not New York has these option expires happening every single day for
pairs and some commodities too. And what this typically means is a complete reversal of whatever
move London has done. So in a way, the New York Stock Exchange is much easier to trade because not
only do you have this expected behavior at a particular time of day, but you also have the possibility of
the average range exhaustion too. So if I push the Bloodtech time machine to the beginning of the final
three hours of the New York Stock Exchange,

you can see that the price actually completely reversed the London move and just carried on through.
So there was this fake-out of a reverse hammer. I don't trade hammers and shooting stars exactly
because of this. Maybe if they're on a very large timeframe, I may consider them, but they always get
retraced on low timeframes. So this initial move was completely reversed during New York. Here is what
it brought.

This is a strong bearish engulfing. At this point, you now have your strong entry signal for your swing
trade. How you execute your entry will be entirely up to you. Some options for trade execution, like for
example, one of them would be to enter as soon as this bearish engulfing candle closes with a stop-loss
slightly higher than the engulfing pattern high. For swing trades, you really don't want to skimp on the
stop losses.

So doing something like this is not a good trade execution practice for swing trades. Another thing you
need to ensure with stop-loss placements in general, which is like a whole science in itself, but in the
simplest way possible stop-loss placements generally need to go below or above the round numbers. So
in this case, we're looking for short. So you'll be looking for a stop loss to go above 1290 and that's
because you have market makers and you have institutional HFTs, which stands for high-frequency
trading systems. They all love taking out these round numbers. So by positioning yourself with that in
mind, you obviously get a much better chance of your trade, to stay in, to survive. It's even better when
you can actually obtain an entry above the round number for a short, but obviously the markets are not
an exact science and you cannot control where the market turns. But what you can control is where
your stop loss goes.

Now in this case for swing trade, now you're looking at a 60 pip stop-loss instead of over 120, which was
needed for the entire area on the daily chart. So using this technique, you have more than halved the
amount of stop-loss needed. I started this lesson talking about limit orders. Well, here is where limit
orders might come in useful. It's a slightly different way to approach them. So it's not to run a limit from
a previously identified supply-demand area, but instead to minimize the even further, it's all to do with
newly formed conus lines. So in this case, you have a newly formed conus line on the 30-minute chart
engulfing pattern. Okay? So that will be another option,
a pending order at the terminus line of the new engulfing pattern. This entry technique would then
further minimize the stop loss needed to only 45 pips without compromising any placement of your
stop-loss. But one issue with this is that the pullback into the continuous line may never come. So you
may never get a fill, which is always a danger with limit orders. I use both of these entry techniques
interchangeably and to be fair, I rarely use limit orders for them. I kind of observe, and I judge the
movement of the next candle and then I decide whether I will wait for the continuous line pullback or I
will execute the trade right away. But if the stop-loss required is not too horrendously big, after that in
the engulfing candle is done, I will just enter the trade. Now this is the part where I want to explain
about accuracy and drawdowns. After you've entered your trades,

we get a lot of emails from people who are obsessed with not having any drawdown on their position
after they've entered the trade. So they're looking for some kind of microscopic accuracy post-trade
entry thinking that somehow this will make a difference to their trading. But listen, this way of thinking
is a result of fear-based behavior and it's an attempt to make yourself more comfortable because you're
not entirely clear on the reasons you've entered the trade in the first place or your trading positions that
are way too large for your trading account.

So by expecting the trade to quickly move in your direction kind of validates your belief that you are
correct. The questions I get are usually along the lines of, uh, how accurate is your method when it
comes to entries and will I experience a drawdown after entering the position? And it's always the same.
They carry on to explain that they find it difficult to stay in a trade that draws down 10, 20 or 30 pips and
it's total nonsense, okay? It's all based on their own psychology. You do not need zero drawdown after
entering a position. In fact, by looking for something like that in a trade and then closing trades because
they've moved in your direction after about 3.2 seconds is a behavior rooted in fear. Nothing more,
nothing less. Having a position going to a draw down will have no impact on your ability to be a
consistently profitable trader.

It's a fear-based behavior that you really need to deal with. And like I said before, it usually comes either
from the fact that uh, you are not sure on the reasons why you entered a trade or your trading way too
large a position size.

Therefore, you're seeing these huge movements as your trading capital goes up and down even with a
10-pip drawdown. And this means you must decrease your sizes. Now let's go back to that chart, that I
was looking at earlier and see what happened with the price after we entered the trade from that 30-
minute rejection.

Look how long this took to move. That's three hours of waiting around and then finally it jumps off a
cliff. So if you are a twitch trader, kind of waiting for zero drawdown, instead of getting a beautiful trade
that went on for days, you'd be exiting already, like somewhere here. But even with end-day trades,
they take time to work out. You will not get a trade that lasts for 10 minutes and then you're going to
get, you know, 10 to one reward-risk ratio. You need to let the price do whatever it's going to do. And
that takes patience. It takes time and it takes some emotional resilience as well. If you're struggling with
all of this, I suggest you kick off a trade and go do something else, it will help massively. While I was
learning how to trade, I renovated basically my entire house. I sorted out the garden. I mean so many
hobbies just to keep me away from the charts, from looking at the chart every single minute and
imagining things in front of my eyes. And then over, you know, a number of months and a year or two,
this became normal and I'm completely comfortable executing a trade and walking away.