The Weekly Candle Trick Smart Money Traders Use (High Probability Entries)

Most traders spend hours looking for entries on the one minute or five minute chart. But the real reason they lose money is because they are ignoring one candle, the weekly candle. And once you understand what this candle is telling you, your entries suddenly become clear and high probability. In this video, I'm going to show you a simple formula smart money traders use to decide whether they should be looking for reversals or continuations during the week. Most traders make the same mistake every week. They open the charts on Monday and immediately start looking for trades. But they never ask the most important question first. What is the weekly candle actually doing? Because every week the market is doing one of two things. It's either continuing the current move or reversing the current move. And if you don't understand which one it is, you end up taking low probability entries. Here's the simple formula for this model. Step number one, look at the current weekly candle position. Is price near the weekly highs, the weekly lows, or the middle of the range? Step number two, ask a simple question. Is smart money likely continuing the move or trapping traders for a reversal? And step number three, then you drop to your lower time frame and wait for CISD confirmation. Once that happens, the entry becomes extremely clear. The reason this works is because the weekly candle represents institutional positioning. Large players move the market in phases, accumulation, manipulation, distribution, and these phases usually start or end around weekly levels. That means if you align your entries with the weekly candle, you are effectively trading with smart money instead of against it. Let me show you some real examples so you can see how this works on the charts. Here we are on the charts, and you can see over here I've got my higher time frame candles. These are my weekly candles, and this is the 15 minute chart. So you can either enter on the five minute or the 15 minute chart, and we use the weekly candles to see where the highs and lows are located. So if this is the current weekly candle, this is the previous week's high. So this is precisely where I want to add my level. So now we want to wait for price to come to these levels. As you can see, price has just swept the highs, come back into the range, and we get the first CISD that's being produced. We need to see price break below this level before we can look for our entry, which confirms the reversal. So let's play this on a little bit more. Then price breaks back over the weekly high, so we're still waiting for a rejection to occur. You can see we're getting another sweep of these highs. So oftentimes price will break the weekly high, form a high, then break that high, inevitably just manipulating. So let's see what happens now. Price comes back into the range. There you go, price comes back into the range, and now we've got two solid CISDs to look for. You can see over here, this becomes our manipulation point. Price broke the CISD, so this is where we want to look for our entry. The break and closure of the CISD, stop loss can come above the previous swing high, and then we can target the most relevant liquidity points, which is either going to be this area, which is a swing low, that's one target, and another target is going to be this next swing low. So these are gonna be my two target areas. I'm gonna target the lowest one. So now let us play this out. Price is bouncing off the second CISD. Guys, price respects the CISD levels, it's amazing. Look at this, price is respecting the CISD level exactly. So now price is coming back to the highs of the range. It just missed our liquidity areas, and you can see now price has reversed against us, but look here, it just missed the stop loss. And now we get another CISD trade, because price swept the weekly high and came back into the range. So let's play this on from here. We could have taken another entry over here. You can see the break and closure. Stop loss goes above the swing high, and then we can target our two liquidity areas. Let's play this out. And there you go, price tapped into it. So we had two potential entries. The first one we came super close. Can you see price just missed our high. Then we had another CISD entry over here, which worked out perfectly and tapped into our targets. If you want help spotting these entry confirmations faster, I built an indicator called SMCX that highlights the exact signals I look for when trading this entry model. It removes a lot of the guesswork and helps you focus only on the high probability setups. You can find it in the link below. If you want to dive deeper into mastering entries, then click to watch the next video right now.