x10hop

Stop Entry Technique (Long-Term)

Also: buy stop entry, sell stop entry, stop order entry

Execution Model high symmetrical

An order entry method for long-term traders in which a buy stop is placed at the opening price of a closed bearish (down) daily candle when the higher- timeframe bias (monthly/weekly) is bullish, or a sell stop is placed at the opening price of a closed bullish (up) daily candle when the higher-timeframe bias is bearish. Entering on a stop uses price strength (bullish candle break) or weakness (bearish candle break) to confirm the trade direction. Because a stop order is almost always filled once triggered, it offers higher fill certainty than a limit order but opens a wider distance between entry and protective stop loss.

First seen: 2016 Updated: 2017
Identification5
  • Monthly and/or weekly chart must show a PD array above (for buys) or below (for sells) current daily price indicating institutional directional draw.
  • Daily candle must be closed and confirmed (not forming or trading).
  • [object Object]
  • [object Object]
  • Each successive down/up candle generates a new potential stop entry level; prior unfilled stop is cancelled and replaced.
Entry3
  • Place buy stop at the open of the confirmed daily bearish candle.
  • Place sell stop at the open of the confirmed daily bullish candle.
  • Entry is triggered when the subsequent candle trades through that opening price in the direction of bias.
Stop4
  • Initial stop loss placed below the most recent significant swing low on the daily chart (for long entries).
  • For bearish entries, above the most recent swing high.
  • Specifically referenced as below a PD array reference point discussed in the companion lesson (Lesson 8).
  • [object Object]
Target3
  • Monthly or weekly premium PD array above entry (for longs); monthly or weekly discount PD array below entry (for shorts).
  • Partial profits may be taken at intermediate daily PD arrays; remaining position held to higher-timeframe objective.
  • Opening price candle can be re-entered if price retraces back after partial profit is taken, effectively averaging the position.
Invalidation3
  • Daily candle closes in the direction of intended trade (not a counter-directional candle).
  • Higher-timeframe PD array has been reached or violated, negating the directional draw.
  • Monthly/weekly chart has entered a premium market (for buys) or discount market (for sells) — enthusiasm for entries diminishes.

Inferred Conditions (Unvalidated)

  • Setups exist in discount market conditions for buys; premium conditions for sells.
  • Successive unfilled down candles (for buys) each represent fresh entries at progressively lower opening prices — trader follows along until filled.
  • The opening price of a down candle doubles as a bullish order block reference, reinforcing confluence.

ICT Quotes

"We're gonna be placing a buy stop for an entry on long positions. At that price right here, this is where you place your buy stop entry. The concept is you're gonna be using strength to get you long in the marketplace."

00:01:08|54-ICT Mentorship Core Content - Month 5 - Stop Entry Techniques For Long Term Traders.srt

"A down candle is a bullish order block if price trades away from a down candle, and we trade back down into that opening of the down candle. That's also what if future entry long position."

00:02:46|54-ICT Mentorship Core Content - Month 5 - Stop Entry Techniques For Long Term Traders.srt

"Every down candle promotes new buying opportunity for smart money. The higher we get on the monthly and weekly range and get closer to those premium ranges, the less likely these candles are going to promote strong buying."

00:05:37|54-ICT Mentorship Core Content - Month 5 - Stop Entry Techniques For Long Term Traders.srt

Timeframes

daily
Version History1 version
201700:00:13

54-ICT Mentorship Core Content - Month 5 - Stop Entry Techniques For Long Term Traders.srt

"Buying with stock orders, preferably, you're gonna be looking for setups to have the monthly and or weekly, suggesting institutional order flow would be seeking a pdra above daily market price. Today …"

Initial definition in January 2017 content (Month 5).

Notes

Complementary to limit-entry-technique which uses the candle close. ICT consistently notes that stop entries have higher fill probability but wider risk; limit entries have lower fill probability but tighter risk. Both require the same higher-timeframe directional confluence.

Asymmetry Notes

Symmetrical — buy stops on down candles for longs, sell stops on up candles for shorts, same rules apply in both directions.