Hey hey: what's up my friends, so in today's training i just want to share with you one one simple technique to help you develop sniper like trading entries. Okay sounds good! Then let's get started right. So the concept that i want to introduce to you is called stack areas right, but before i get started, let me share with you a very simple analogy. Right.

Let me ask you a quick question which of these two right is easier to remember number one. Is your wife's birthday easier to remember or number two, your wife's birthday, which is on christmas and happens to be your wedding anniversary? Which of this is easier to remember, i'm sure you would agree. It's number two right because there are multiple events coming together on that one same day: okay, let's not uh! You know talk about why why all these events are on the same day, maybe because you know we're all cheapo guys, you don't want to save some money on gifts, but you know, let's get focused on the main point. Why is this they more significant? Why is number two more significant and that's because we have multiple events coming together on that one same day and it's easier for the mind to remember.

Oh man, this book this christmas is it's uh, something that i better not forget, because it's my wife's birthday, it's our any wedding anniversary, yada yada. So now you might be wondering hey rainer. How does this apply to trading man? What has this got to do with freighting? Well, a lot actually because, if you think about this right, the the charts that you're seeing right the support resistance, the area of value right, the key ones right that you want to be paying attention to are the ones that can also be noticed from the higher Time frame, so this is why i call it stack areas, because if your area of value, let's say on a daily time frame, can also be seen by a weekly timeframe trader. That area is much more significant because it has attracted traders from different time frame together to watch that area on your chart.

That makes it more significant. So how do you apply this to your trading right? So a few things that you want to pay attention to number one. You want to identify the higher time frame area of value first number: two, then you can look for a valid trading setup on your trading time frame and that trading setup actually leans against the higher time frame area of value that you have drawn in number one. Okay, so, for example, it could be something as simple as the false break setup, which i'll share with you later.

So one thing to point out is that you want to have a factor of between four to six right between the two time frame. So, for example, let's say your higher time frame is the weekly time frame. Then your trading time frame can be like the daily time frame. Why daily? Because daily you multiply by five right, one daily candle multiplied by five.

It gives you a weekly candle, so this is a factor of five now what if your higher time frame is the daily time frame. So what is your trading time frame or some people want to call it the lower timeframe? That's fine! Well, it can be the four-hour timeframe why the four-hour very simple, because four hours, you multiply by six that's 24 hours and that is equals to one day. So it can be from the four hour time frame anywhere from four hour to the six hour time frame anywhere in between, because if it's the six hour time frame, then you take six multiply by four that's 24 hours, which is equals to one day and that Will be a factor of four so anywhere between a factor of four to six between time frames? That is absolutely fine. Okay.

So now with that said right, how do we apply this to get sniper trading entry? So let me share with you a few chart. Examples shall we so first one is euro new zealand, so this is the daily time frame. Then let's say we are you know using this as our higher time frame. So let me just drop the area of value here.

You can use a line tool. You can use a box tool whatsoever, i'm just gon na go with box right since it's easier to visualize here. Okay, so i would say this is the area of value that i would have on my chart, because the price has tested resistance once twice tries for previous resistance, become support, and here as well and here as well. Okay, so with that said right, our higher time frame area of value is plotted already.

The next thing we want to do is go down to a lower time frame and look for a valid trading setup like the false break setup, so a false break setup. Let me just explain to you briefly is something as simple as this market is: did a bounce off the lows come back and we test this previous low. It took out the previous low over here and then make a strong reversal and close back above this swing. High, what you can do is go along on the next candle open and you'll stop, so it will go below this low somewhere about here.

So this is what i call the false brake setup where the price re-tests, the previous swing, low, the price re-test. The previous support couldn't break below it and then get rejected and close strongly back above support, vice versa, for resistance. Okay. So with that say, let's go down to a lower time frame like the four hour time frame - and you see over here over here, we have a false break setup, i'm just going to zoom in okay over here.

Look so at this point right at this point. Right to a newbie trader, who just looked at the four over timeframe team, i think man, i'm trading against this downtrend over here and i'm trading against the trend right, i better not buy because it's dangerous it's risky, but to an astute professional price action trader. You know that you're actually buying at a pretty done good price at a low price at this stag area of value. Not only is this a swing low on this time frame, this swing low also coincides with the area of value which you saw earlier on the higher time frame.

That's why we draw this red box over here, so this is a key area. This is really how you buy low and sell high okay, and this is what i call a false break set up. The price took out. This lows got rejected strongly and closed back near uh back above support.

So what you can do is again just go along on the next candle open here right. Your stop loss can just go uh 180 below this low somewhere about here. Give it some buffer. Don't put it just smack below this low, give it some buffer, because if you just put it smack below this low, it's not my style, because the market could easily just swing back.

Take out this lows and then reverse back up higher. So usually i give it some buffer okay, so i hope this uh, this stack area of value, this stack area, makes sense to you. Let me look at another example for you so same thing, my friend right, this is canadian yen. Okay, first and foremost, we want to do is identify the area of value.

So let's say the higher time frame is the daily time frame draw out your area of value. So again you can see tested once resistance once twice twice four times, then previous resistance. That could become support once twice twice, so the next thing we want to do is to go down to a lower time frame like the four hour time frame to time our entry, so on the four-hour timeframe again. What we're looking for is the false break setup.

Something as simple as the false break setup, so we can see that over here the aerial value i've drawn is much larger. I think we can just shrink it down to something like this. Okay, so over here we have the false break set up on the canadian yen same thing. Price came down over here on a forward time frame and took out this extreme lows this lows as well, then he rarely up close back above this uh area of value.

This area of support right just zoom in a little bit. You can see over here much clearer, okay, so what it can do again, next candle open go long, stop loss will be 180 below this low somewhere about here. So again, remember you're, not trading. This time frame trend all right.

Yes, it might seem that you're trading against this time frame, downtrend you're trading against - i mean you're trading against the downtrend. But if you understand right, the stack area of value you're actually buying right at a low level right, an area right where could attract the higher time frame traders as well to push the price higher. So this is what i mean by the stack area on your charts. So let's look at another one euro, swiss franc.

So let's do this a little bit different right this time around the weekly time frame, you'll notice that euro swiss rank. We have another uh this over here, an area of value, but instead of representing using support resistance, we can use trend line as well right. So this is the weekly time frame. Let's go down to the lower time frame or your trading time frame to look for the entry trigger to go short, so in this case right, this is where your trigger came in.

So, actually, you can see that on this time frame, you have this uh previous resistance that could become support. I like this black. Actually, so let me go with black over here, so you can see over here previous support support, support, support that could become resistance. However, you're not just blindly selling in this previous support, that could become resistance, because you also know that on a higher time frame, this over here is a stack.

I mean it's a it's. A downward trend trend line right this area, where potential selling pressure could be lurking right. People on the weekly timeframe will notice that downward trend line. I draw it as a channel right, i mean so it's easier to visualize this as an area.

Okay, so again, the entry trigger could be something as simple as this lower close over here on this candle price spike up higher close near the middle of the range. The next candle tried to rally once more couldn't go up higher and then close near the lows of this candle gold shot on the next candle open. Stop loss can go 180 r above this highs somewhere here, so i'm not gon na share with you. The end result of this trade or whatsoever, because the key thing i want to focus here is the concept right understanding stack areas, understanding that you are trading from an area of value that can also be seen on the higher time frame right.

This really sweetens the trade a lot okay, another example. This time around, we will change things up a bit our area of value. Instead of using a support, resistance or trend lines, we are going to go with moving average, so this is the chart of nasdaq daily time frame. If you pull out the 20ma, you notice that this market all right, has been staying consistently above the 20ma tested once twice twice: four five.

Okay, so we can see that clearly, this market respects the 20ma so again same concept right. The 20ma can serve as an area of value, so let's go down to the entry timeframe, which is the four-hour timeframe. In fact, let me just draw the area of value first on this time frame right. So it's somewhere about here, okay, somewhere about here somewhere about here right, go down to the four hour time frame, okay, and you can see that what you're looking for is for this market to re-test around this area of value on a daily time frame.

So one thing to bear in mind is that your area of value now is the 20ma on the daily timeframe, and the 20ma, you know, will is dynamic. It goes up together with the price, so a simple trick i have for you is that what you can do is to just adjust the 20ma on the forward timeframe. So, instead of using a 20mm on a forward timeframe, you change it to 120.. So this is simply right: the 20ma on the daily timeframe, just click, ok, and you can see that it's somewhere about here right now.

This is the this right is simply right. The 20ma that you saw earlier on the daily timeframe, so again, one possible setup could be this market right comes down and closed back up above this area of support right. Another false break set up the price took out this lows and coincides right with again this area of value that you saw earlier on the daily time frame. Okay, so this is another one on nasdaq same concept right, we are just leading against the higher time frame area of value.

So, just one more before we we sum up today's uh training, another one is euro dollar same concept, all right. Let's look at the daily time frame. You notice that this market broke out of resistance over here. Okay broke out of this area of resistance.

Great. If you pull out your 20, i may notice that again right, this market is in a strong, uptrend right. In fact, uh had a bounce off 20 me about once over here, a bit of chop move second bounce and right now it's still above here so i'll, say again. The 20ma here is still an area of value so somewhere about here.

So again, one thing to point uh bear in mind is that the 20ma on the daily timeframe it will go up over time as long as the price you know goes higher, so the 20ma is not static like support resistance, it goes up as well. So if you go down to the four hour time frame and look for a trading setup, okay, so what you can do is that if you want to know what is the 20m on the daily like just change the this to 120 y120, very simple, four hour Timeframe: okay, you multiply by six right gives you 24 hours, which is one day so on this time frame right. The 20ma you multiply by six okay, we'll give you the 20ma on the daily timeframe. So, press, ok and you can see that around here is where this uh this over here is the 20ma 20ma on the daily timeframe - okay, so about here.

So what we can expect again, or rather uh plan, is for this market to make a false break at this area of support. So price could head up higher smash down lower, make a false break close back strongly above support. We can go along on the next candle open again, stop loss, one atr below this lows and again. Why is this significant? Because we are leading against the area of value from the daily time frame right, which is the daily 20ma okay, so it doesn't have to be just moving.

Average can be support. Resistance can be trend lines just a few examples that i've shared with you earlier. So this is what i mean by stack areas. So quick recap right number one! You want to identify the higher time frame area of value.

You can use trend, line, support resistance, me whatsoever. It's up to you. You can draw it as a box. You can draw it as a line up to you.

Next thing you want to do is to look for a valid trading setup on your trading time frame that lean against this higher time frame area of value that you have drawn in number one right, usually, if you have a set up that lean against this higher Timeframe, area of value right - that is really the key area that uh you want to be trading from that you want to pay attention to, and that's really it really help you sweetens right, your trading setup and also, of course, right. A factor of four to six between time frame, some of you might know it some may not so with that said, i have come to the end of today's training if you've enjoyed it you're gon na learn more. I got some uh trading guide to help you along the way, the ultimate guide to price action trading, just go down to my website trading with reno.com click, this orange button and i'll send it to your email for free right. This guy will talk more about price action, trading, support resistance, market structure, candlestick patterns and so much more so go and do it right now it's free and i'll talk to you soon.

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